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

question 28

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:

Inner Light

A concept in Quaker belief that signifies the direct recognition of God's presence within each person.

Cotton Mather

A New England Puritan minister, prolific author, and pamphleteer known for his role in the Salem witch trials and for promoting smallpox vaccination.

William Penn

An English nobleman, writer, and early Quaker who founded the Province of Pennsylvania, a North American colony of England, as a place of religious freedom.

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