Competitive advantage is based:
A) upon the possession of distinctive competencies.
B) on low barriers to imitation.
C) on a higher cost structure.
D) on low utility.
E) on barriers to change in a company.

Question

Quizplus · Accepted Answer

Competitive advantage is based upon the possession of distinctive competencies, which are unique capabilities and resources that a firm possesses that give it an edge over its competitors. These competencies can be in the form of technology, patents, brand reputation, or skilled employees. Low barriers to imitation (choice B) can actually decrease a firm's competitive advantage, as it makes it easier for competitors to replicate their strategies. A higher cost structure (choice C) can also decrease competitive advantage, as it can lead to higher prices and less profitability. Low utility (choice D) is not related to competitive advantage. Barriers to change in a company (choice E) may or may not affect a company's competitive advantage, depending on the specific circumstances.

Competitive Advantage Is Based