Vehmo IncIs an Automobile Company Whose Core Competency Lies in Manufacturing

question 3

Multiple Choice

Vehmo Inc.is an automobile company whose core competency lies in manufacturing petrol- and diesel-based cars.The company realizes that more of its potential customers are switching to electric cars.The R&D department of the company acquires competencies in developing electric cars and launches its first hybrid car.In this scenario,Vehmo is primarily

• A) leveraging new core competencies to improve current market position.
• B) redeploying existing core competencies to compete in future markets.
• C) unlearning existing core competencies to create and compete in markets of the future.
• D) building new core competencies to protect and extend current market position.

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a resource.

Additional Revenue

The increase in income received from selling one more unit of a product or service.

Additional Unit

The next unit of production, referring to the increase in quantity by one unit.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, such as labor or capital.