Kim's T-shirt factory was expert at providing unique,high-quality,but costly to make shirts.Even though the designs were very nice and the amount of detail increased over time,the high price meant that few customers bought shirts from her and her factory went bankrupt.Kim's factory failed due to
A)inertia.
B)prior strategic commitments.
C)the Icarus paradox.
D)lack of distinctive competencies.
E)lack of capabilities.

Question

Quizplus · Accepted Answer

The Icarus paradox refers to a situation where a company's strengths become its weaknesses, leading to its downfall. In this case, Kim's factory focused on high-quality, unique designs, which increased costs and prices, ultimately reducing customer demand and causing bankruptcy.

Kim's T-Shirt Factory Was Expert at Providing Unique,high-Quality,but Costly to Make