Seth's Computer Repair has maintained a competitive advantage based on its thorough and professional service, reasonable pricing, and money-back guarantee. Management at the company is so committed to doing repairs well that they often have rejected employee suggestions to expedite their processes. Recently, the company has begun to lose customers to a new local service offering same day in-home repairs and 24/7 online customer support. According to the dynamic capabilities perspective, Seth's Computer Repair has lost its competitive advantage due to
A) value chain disruption.
B) core rigidity.
C) resource flows.
D) resource stocks.

Question

Quizplus · Accepted Answer

When a firm relies on a core competency for too long and fails to adapt to changes in the external environment, its core competency becomes a core rigidity. Seth's failure to upgrade its service model to compete with the features offered by its competitors is a core rigidity that has led to a competitive disadvantage.

Seth's Computer Repair Has Maintained a Competitive Advantage Based on Its