To build a competitive advantage by out-managing rivals in performing value chain activities,a company must:
A) position itself in the industry's more favorably situated strategic group.
B) develop resource strengths that will enable it to pursue the industry's most attractive opportunities.
C) develop core competencies and maybe a distinctive competence that rivals don't have or can't quite match and that are instrumental in helping it deliver attractive value to customers or else be more cost-efficient in how it performs value chain activities such that it has a low-cost advantage.
D) outsource all of its value chain activities to world-class vendors and suppliers.
E) eliminate its resource weaknesses.

Question

Quizplus · Accepted Answer

To build a competitive advantage by out-managing rivals in performing value chain activities, a company must develop core competencies and maybe a distinctive competence that rivals don't have or can't quite match. This will help the company to deliver attractive value to customers or be more cost-efficient in how it performs value chain activities, giving it a low-cost advantage. Developing resource strengths that enable the company to pursue the industry's most attractive opportunities is also important, but this alone may not provide a sustainable competitive advantage. Outsourcing all of its value chain activities to world-class vendors and suppliers or eliminating resource weaknesses may be a part of the strategy, but building core competencies is the most important factor. Positioning itself in the industry's more favorably situated strategic group may provide initial advantages but is not sustainable in the long run.

To Build a Competitive Advantage by Out-Managing Rivals in Performing