The Owner of a Store That Sells Fine-Quality Fabrics for Home

question 14

Multiple Choice

The owner of a store that sells fine-quality fabrics for home seamstresses bemoans the fact that few young women know how to do fine tailoring,much less simple dressmaking. Many potential customers are unable to appreciate
The premium quality of the fabrics and are deterred by the high prices,as well as the complexity of fine sewing. In the past,the store had a strong demand for fabrics,large classes for women learning the fine points of sewing,and a reputation for excellent service and technical advice. Now the store is earning lower-than-average returns. This case is an example of

• A)the hazard of competitors being able to imitate a firm's core competency.
• B)the need for firms to stick to their core competencies through temporary downturns in market demand.
• C)the lack of intangible resources undermining the core competencies of the firm.
• D)core competencies that have become core rigidities.

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Definitions:

Chronic

Describing a health condition that is persistent or long-lasting in its effects.

Abate

To reduce in amount, degree, or severity; often used in the context of something undesirable.

Format

A structure or layout of data that specifies its arrangement and organization.

Rapport

A positive relationship characterized by mutual understanding, trust, and agreement between people.