Ravi, a supervisor at Autumn Inc., notices that the company has been successful in outperforming its competitors in the industry and declares that the company has achieved competitive advantage. Yolanda, a manager at Autumn Inc., argues that this is not true. Which of the following strengthens Ravi's claim?
A)Autumn Inc.'s strategy is imitable by its competitors.
B)Autumn Inc.'s strategy can be pursued by competitors as it is not too costly.
C)Autumn Inc. is able to outscore a superior company in the next quarter.
D)Autumn Inc. has been consistently outperforming its rivals in generating above-average profits.

Question

Quizplus · Accepted Answer

The fact that Autumn Inc. has consistently outperformed its rivals in generating above-average profits strengthens Ravi's claim that the company has achieved competitive advantage over its competitors. Consistent profitability is a key indicator of sustained competitive advantage as it shows the company is able to maintain its superiority in the market over time. Options A and B weaken Ravi's claim as they suggest that Autumn Inc.'s strategy can be easily replicated by competitors. Option C is irrelevant as it only talks about the performance in the next quarter, which may or may not be sustained in the long term.

Ravi, a Supervisor at Autumn Inc