Onyxo Inc.,a consumer electronics company,is the leading manufacturer of LCD televisions.LCD technology has been its core competency and the company holds 80 percent shares in that market.However,Onyxo Inc.'s competitors have now moved on to advance technologies like LED and 3-D televisions.According to the dynamic capabilities perspective,what should Onyxo Inc.do?
A) Onyxo Inc. should start working on LED and 3-D television technologies to adapt its core competency to suit the external environment.
B) Onyxo Inc. should stick to its existing core competency, that is LCD technology, as it is the best in that segment.
C) Onyxo Inc. should take proactive steps to reduce the causal ambiguity and socially complexity of its core competency.
D) Onyxo Inc. should work on enhancing the mobility of its core competency.

Question

Quizplus · Accepted Answer

According to the dynamic capabilities perspective, Onyxo Inc. should start working on LED and 3-D television technologies to adapt its core competency to suit the external environment. The essence of dynamic capabilities perspective is that competitive advantage is not derived from static resource or market advantages, but from a dynamic reconfiguration of a firm's resource base.

Onyxo Inc,A Consumer Electronics Company,is the Leading Manufacturer of LCD Televisions