An Example of the Business Strategy of Sticking to Core

question 18

True/False

An example of the business strategy of sticking to core competencies is for a company like Papa John's Pizza to concentrate on selling pizza and related food and beverage items to the public.

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost compared to others.

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Productive Advantage

Occurs when a country, business, or individual produces a good or service at a lower opportunity cost than competitors, leading to more efficient production.

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a lesser opportunity cost compared to its rivals.