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.
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 and that are instrumental in helping it deliver attractive value to customers. This means focusing on specific areas of expertise and doing them better than anyone else in the industry. A strong core competence can enable a company to create unique value for customers and differentiate itself from competitors. This is a more sustainable strategy than simply trying to position oneself in a more favorable strategic group or eliminating weaknesses. Developing resource strengths and outsourcing can be part of the strategy, but they are not sufficient on their own to build a competitive advantage.

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