According to our textbook,a firm's ____________ allow it to reduce the costs of value creation and/or to create value in such a way that premium pricing is possible.
A) special attributes
B) discriminate attributes
C) indigenous properties
D) core competencies
E) economies of scale

Question

Quizplus · Accepted Answer

Core competencies are unique strengths or abilities that a firm possesses, which allow it to differentiate itself from its competitors and create value for its customers. These competencies may include skills, knowledge, technologies, or organizational capabilities that enable the firm to reduce costs, improve quality, or develop new products or services. By leveraging its core competencies, a firm can establish a competitive advantage and earn premium returns. Economies of scale are a related concept, but they refer specifically to the cost advantages that arise from producing goods or services at a larger scale. While economies of scale can be an important source of cost efficiency, they may not necessarily create a sustainable competitive advantage without unique competencies. Therefore, the best choice is D, core competencies.

According to Our Textbook,a Firm's ____________ Allow It to Reduce