How does possessing a core competence help a firm?
A)It helps a firm to create value in such a way that premium pricing is impossible.
B)It reduces a firm's dependence on its logistics function.
C)It enables a firm to reduce the costs of value creation.
D)It reduces the scope of transfer of skills to foreign markets.
E)It reduces the need to replicate a business model in a foreign market.

Question

Quizplus · Accepted Answer

Possessing a core competence enables a firm to reduce the costs of value creation by leveraging its knowledge and expertise. This, in turn, can lead to a competitive advantage in the market, as the firm can offer products or services at a lower cost than its competitors. It also helps the firm to focus on its strengths and develop strategies to improve its core competencies, rather than trying to compete in areas where it may not have a comparative advantage.

How Does Possessing a Core Competence Help a Firm