The Four Basic Building Blocks of Competitive Advantage Are

question 39

Multiple Choice

The four basic building blocks of competitive advantage are

• A) low cost, quality, efficiency, and customer responsiveness.
• B) differentiation, quality, innovation, and customer responsiveness.
• C) quality, efficiency, differentiation, and customer responsiveness.
• D) customer responsiveness, quality, efficiency, and human resources.
• E) quality, customer responsiveness, innovation, and efficiency.

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Definitions:

Variable Costs

Costs that change in proportion to the level of activity or volume of production, such as raw materials and labor expenses.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, offering predictability in budgeting.

Operating Leverage

A measure of the relative mix of a business’s variable costs and fixed costs, computed as contribution margin divided by operating income.

Highly Automated Industries

Sectors that rely extensively on automation and machinery to produce goods or deliver services with minimal human intervention.