The "diagonal assembly system" was a production system pioneered by the automobile company Mova.During the period when diagonal assembly system was a rare resource, Mova was able to gain a temporary competitive advantage.Once competitors became aware of this unique competency and started applying it as an industry standard, Mova was unable to sustain its competitive advantage.This loss of Mova's competitive advantage can be attributed to _____.
A) divergent production
B) resource immobility
C) knowledge diffusion
D) resource ambiguity

Question

Quizplus · Accepted Answer

The loss of Mova's competitive advantage can be attributed to knowledge diffusion. Once a rare resource becomes an industry standard, it leads to competitive parity.

The "Diagonal Assembly System" Was a Production System Pioneered by the Automobile