Atlas Door could lose competitive advantage for all of the following reasons except
A)Its technologies are non-proprietary.
B)A rival could hire away its talents easily.
C)A new rival with a strong resource base could undercut its prices.
D)It has strong power over its distributors.

Question

Quizplus · Accepted Answer

An argument could be made that much of the Atlas Door strategy relies on technologies that are rather well known and nonproprietary. Over time, a well-financed rival could imitate its strategy (via trial and error), achieve a tight integration among its value-creating activities, and implement a just-in-time manufacturing process. Because human capital is highly mobile, a rival could hire away Atlas Door talent, and these individuals could aid the rival in transferring Atlas Door best practices. A new rival could also enter the industry with a large resource base, which might enable it to price its doors well under Atlas Door to build market share (but this would likely involve pricing below cost and would be a risky and non-sustainable strategy). In its favor, it does have high power over its customers (distributors), because of its ability to deliver a quality product in a short period of time.

Atlas Door Could Lose Competitive Advantage for All of the Following