For a company to translate its performance of value chain activities into a competitive advantage, it must
A)undertake ongoing and persistent efforts to be cost-efficient and develop differentiation advantages.
B)have more core competencies than rivals.
C)have at least three distinctive competencies.
D)have competencies that allow it to produce the highest-quality product in the industry.
E)have more competitive assets than competitive liabilities.

Question

Quizplus · Accepted Answer

Undertaking ongoing and persistent efforts to be cost-efficient and develop differentiation advantages enables a company to translate its performance of value chain activities into a competitive advantage. Cost-efficiency creates cost advantages, while differentiation advantages enable a company to create a unique product or service that meets customers' needs better than its competitors. Companies that possess both cost and differentiation advantages are better positioned to compete effectively and achieve a sustainable competitive advantage. The other choices are either too broad or too limited to describe the conditions that facilitate a company's transformation of its value chain activities into a competitive advantage.

For a Company to Translate Its Performance of Value Chain