Otion Inc.is a relatively new firm in the consumer electronics industry.The company's primary objective is to become the market leader in less than 5 years,for which it has to gain and sustain a competitive advantage.In the context of the VRIO framework,which of the following resources should Otion Inc.primarily focus on to achieve its objective?
A) quality standards, which are common and mandatory throughout the industry
B) inexpensive unskilled labor that is easily accessible by all companies
C) component parts that are sourced from competitors' suppliers
D) production systems that reduce costs by 30 percent below the current industry standards

Question

Quizplus · Accepted Answer

Otion Inc. should primarily focus on production systems that reduce costs by 30 percent below industry standards to achieve its objective. A resource is valuable if it allows a firm to take advantage of an external opportunity and/or neutralize an external threat.

Otion IncIs a Relatively New Firm in the Consumer Electronics Industry