Which of the following is true of competitive advantage?
A)It requires a company to consistently outperform its rivals in generating above-average profits.
B)It should be avoided by not-for-profit organizations.
C)It is usually achieved by firms that provide general as well as imitable products.
D)It can be measured by using only tangible outcomes.

Question

Quizplus · Accepted Answer

Competitive advantage refers to the ability of a company to outperform its competitors in generating above-average profits consistently. It is a critical success factor for any business that wants to survive and thrive in an intensely competitive environment. Companies with a competitive advantage can charge premium prices, offer better products or services, streamline operations, and win market share. It is not necessary (or even desirable) for not-for-profit organizations to pursue a competitive advantage because they have different goals and objectives. Competitive advantage is usually achieved by firms that provide unique, valuable, and difficult-to-imitate products or services that give them an edge over their rivals. It is a complex concept that cannot be measured solely based on tangible outcomes, such as revenue or profit. Other factors, such as customer loyalty, brand recognition, intellectual property, innovation, and organizational culture, also play a crucial role in creating and sustaining competitive advantage.

Which of the Following Is True of Competitive Advantage