InVue, a consumer electronics company, is the leading manufacturer of high-definition (HD) LED televisions. HD technology has been its core competency and the company holds 60 percent shares in that market. However, InVue's competitors have now begun to produce more-advanced technologies like 4K Ultra HD and Internet-enabled Smart televisions. According to the dynamic capabilities perspective, what should InVue do?
A) InVue should start working on Ultra HD and Smart television technologies to adapt its core competency to suit the external environment.
B) InVue should stick to its existing core competency, that is HD LED technology, as it is the best in that segment.
C) InVue should take steps to reduce the causal ambiguity and socially complexity of its core competency.
D) InVue should work on enhancing the mobility of its core competency.

Question

Quizplus · Accepted Answer

According to the dynamic capabilities perspective, InVue should start working on Ultra HD and Smart television technologies to adapt its core competency to suit the external environment. The essence of dynamic capabilities perspective is that competitive advantage is not derived from static resource or market advantages, but from a dynamic reconfiguration of a firm's resource base.

InVue, a Consumer Electronics Company, Is the Leading Manufacturer of High-Definition