In which of the following circumstances is it not advantageous for a multinational competitor to concentrate its activities in a limited number of locations in order to build competitive advantage?
A)When the costs of performing certain value chain activities are significantly lower in certain geographic locations than in others
B)When a company has a competitively superior patented technology that it can license to foreign partners
C)When there is a steep learning or experience curve associated with performing an activity in a single location
D)When certain locations have superior resources,allow better coordination of related activities,or offer other valuable advantages
E)When there are significant economies of scale in performing the activity

Question

Quizplus · Accepted Answer

When a company has a competitively superior patented technology that it can license to foreign partners, it may not need to concentrate its activities in a limited number of locations in order to build competitive advantage. In this case, the company can license its technology and allow partners around the world to perform various value chain activities in their own locations, which can provide cost advantages and improve coordination. This allows the company to leverage its technology for competitive advantage without having to concentrate its activities in a limited number of locations.

In Which of the Following Circumstances Is It Not Advantageous