Differences in long-term performance between firms in the same industry primarily come from different internal sources of competitive advantage.

Question

Quizplus · Accepted Answer

This statement is true. While external factors such as market conditions and competition can certainly impact a company's performance, sustained success over the long term often depends on a company's ability to create and maintain internal advantages. These might include factors such as a strong brand, proprietary technology, superior supply chain management, or a talented and dedicated workforce. By leveraging these advantages, companies can differentiate themselves from their peers and build a sustainable competitive edge.

Differences in Long-Term Performance Between Firms in the Same Industry