Brain Boost Inc. is a leading educational toy company. Competitors across the globe have failed to imitate Brain Boost's production models, supply chain systems, knowledge systems, and culture. These attributes have remained unique to Brain Boost Inc. for a long time. Which of the following assumptions of the resource-based model of competitive advantage does this scenario best illustrate?
A) resource homogeneity
B) resource cost
C) resource substitution
D) resource immobility

Question

Quizplus · Accepted Answer

The scenario best illustrates resource immobility. A critical assumption of the resource-based model-resource immobility-is that resources tend to be "sticky" and don't move easily from firm to firm. Because of that stickiness, the resource differences that exist between firms are difficult to replicate and, therefore, can last for a long time.