Core competencies enable a firm to reduce the costs of value creation and/or to create perceived value in such a way that premium pricing is possible.

Question

Quizplus · Accepted Answer

Core competencies are unique abilities or strengths that a firm possesses, which allow it to perform certain activities more efficiently or effectively than its competitors. By leveraging these core competencies, a firm can reduce costs and/or increase perceived value, which in turn may enable it to charge a premium price for its products or services. Therefore, the statement is true.

Core Competencies Enable a Firm to Reduce the Costs of Value