Resources and capabilities are the basis of competitive advantage only when they satisfy all of the following criteria except ________.
A) they must be marketable
B) they must be valuable
C) they must be rare
D) they must be difficult to imitate

Question

Quizplus · Accepted Answer

Resources and capabilities must be marketable to generate revenue or provide cost savings, but this is not a criterion for them to be the basis of competitive advantage. The other three criteria - valuable, rare, and difficult to imitate - are crucial in achieving a sustainable competitive advantage. Valuable resources and capabilities enable a firm to exploit opportunities or defend against threats in the market. Rare resources and capabilities make them less available to competitors, which reduces the likelihood of imitation or substitution. Difficult-to-imitate resources and capabilities are those that are unique, hard to replicate, or protected by legal or social barriers, making it challenging for competitors to reproduce them.

Resources and Capabilities Are the Basis of Competitive Advantage Only