Trust Machines Inc.is a company that manufactures and markets consumer electronics.The unique microprocessors developed by the company contribute to its high resource immobility.According to the resource-based view of competitive advantage, which of the following is an implication of this situation?
A) The competitive advantage of Trust Machine Inc. will soon be lost.
B) The resource heterogeneity of Trust Machine Inc. is low within the industry.
C) The resources of Trust Machine Inc. are difficult to replicate or imitate.
D) The environment in which Trust Machine Inc. operates is closest to perfect competition.

Question

Quizplus · Accepted Answer

According to the resource-based view of competitive advantage, the resources of Trust Machine Inc. are difficult to replicate or imitate. Because of resource immobility, the resource differences that exist between firms are difficult to replicate and, therefore, can last for a long time.