Which of the following reasons is not a reason that Atlas Door could lose competitive advantage?
A) Its technologies are non-proprietary.
B) A rival easily could hire away its talented employees.
C) A new rival with a strong resource base could undercut its prices.
D) It has strong power over its distributors.

Question

Quizplus · Accepted Answer

An argument could be made that much of the Atlas Door strategy relies on technologies that are rather well-known and non-proprietary. Over time, a well-financed rival could imitate its strategy (via trial and error), achieve a tight integration among its value-creating activities, and implement a just-in-time manufacturing process. Because human capital is highly mobile, a rival could hire away Atlas Door talent, and these individuals could aid the rival in transferring Atlas Door best practices. A new rival could also enter the industry with a large resource base, which might enable it to price its doors well under Atlas Door to build market share (but this would likely involve pricing below cost and would be a risky and non-sustainable strategy). In its favor, it does have high power over its customers (distributors) because of its ability to deliver a quality product in a short period of time.

Which of the Following Reasons Is Not a Reason That