Riya has recently started a restaurant in a commercial area where there are many other established restaurants and popular fast-food chains.Riya owns the plot on which her restaurant is located and this makes her cost of operations lower than the competitors.This factor allows her to offer her products at a competitive price.Riya has also invested a huge amount on the interiors of the restaurant and in equipping the kitchen with the latest appliances used by her competitors.In this scenario,which of the following is the most valuable resource for Riya's business?
A) the investments made by Riya on the restaurant's interiors
B) the latest kitchen equipment that is at par with the restaurant's competitors
C) the restaurant's late entry into the market
D) the land owned by Riya, which reduces cost of operations

Question

Quizplus · Accepted Answer

A resource is valuable if it helps a firm increase the perceived value of its product or service in the eyes of consumers, either by adding attractive features or by lowering price because the resource helps the firm lower its costs.

Riya Has Recently Started a Restaurant in a Commercial Area