In the context of the resource-based model of competitive advantage, which of the following scenarios best exemplifies resource immobility?
A) AP Corp. has earned a good reputation among its shareholders by investing more heavily in equipment than in building up brand equity.
B) Two Triangle Inc. has lost its market share because its resources are rigid, inflexible, and static.
C) Blue Elixir Corp. has been able to gain a competitive advantage because of its ability to efficiently move its resources from one manufacturing unit to another.
D) True 3 Inc. has been able to outperform its competitors because the uniqueness of its employee experience is difficult for competitors to replicate.

Question

Quizplus · Accepted Answer

In the resource-based model of competitive advantage, resource immobility refers to the assumption that resources of a firm tend to be "sticky" and do not 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.

In the Context of the Resource-Based Model of Competitive Advantage