Which of the following statements about technology is true?
A) Technology alone is enough to provide sustainable competitive advantage to a firm.
B) Technology plays a marginal role in creating strategic differences.
C) Technological improvements are not important in strengthening a firm's strategic advantages.
D) Technological improvements can often be copied by rivals, leading to a profit-eroding arms race.
E) Technology cannot be used by late entrants to gain a share of the industry.

Question

Quizplus · Accepted Answer

Technological improvements, while crucial for maintaining competitiveness, can often be replicated by competitors. This replication can lead to a situation where firms continuously invest in new technology to outdo each other, potentially eroding profits over time as each tries to gain an upper hand.

Which of the Following Statements About Technology Is True