When a company has weaknesses relative to competitors among strategically important resources and capabilities,the appropriate strategic response is to:
A)Invest heavy in order to upgrade weaknesses
B)Diversify in order to find new areas of business where these resources and capabilities are unimportant to competitive advantage
C)Outsource those activities where third parties can offer superior capabilities while positioning the business to reduce vulnerable to remaining weaknesses
D)Employ management consultants to seek a solution.

Question

Quizplus · Accepted Answer

Outsourcing allows the company to reduce vulnerability to weaknesses while still maintaining access to necessary resources and capabilities. It also allows the company to focus on areas where it has a competitive advantage. Investing heavily in upgrading weaknesses may not be cost-effective or feasible, diversifying may not address the issue of weaknesses, and hiring consultants may not address the root causes of the weaknesses.

When a Company Has Weaknesses Relative to Competitors Among Strategically