If a Firm Has a Service That Is Valuable, Rare

question 59

Multiple Choice

If a firm has a service that is valuable, rare, and costly-to-imitate, but a substitute exists for the service, the firm will

• A) achieve competitive parity.
• B) have a competitive disadvantage.
• C) have a temporary competitive advantage.
• D) gain a sustainable competitive advantage.

---

Definitions:

Competitive Advantages

Competitive advantages are factors or attributes that allow a company to outperform its competitors, such as superior quality, brand reputation, or cost efficiency.

Value Chain

A model that outlines the series of steps a company takes to create and deliver a product or service to the market, adding value at each stage.

Buying Criteria

The set of attributes or characteristics that consumers consider when deciding to purchase a product or service, such as price, quality, and brand reputation.

Resource-Based View

A strategic management approach focusing on leveraging a firm's internal resources and capabilities to gain competitive advantage.