Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The company invested heavily in marketing without analyzing its market position
B
The company effectively utilized its existing resources and competencies to innovate
C
The company reduced its workforce to cut costs
D
The company followed its competitors' strategies blindly
Understanding the Answer
Let's break down why this is correct
Answer
The company most likely gained its advantage by creating a unique value proposition that customers cannot easily copy, such as a breakthrough product feature or a lower price that still preserves quality. This change usually comes from a deliberate shift in strategy—whether through investing in research and development, streamlining operations, or forging powerful partnerships. For example, a smartphone maker that introduces a proprietary camera sensor can command higher sales while competitors use off‑the‑shelf components. By aligning its resources and capabilities with a clear customer need, the firm turns a strategic decision into a lasting competitive edge.
Detailed Explanation
Using the company’s own strengths and skills, it created something new that customers liked. Other options are incorrect because People often think more money spent on ads automatically wins customers, but ads only raise awareness; Cutting jobs can save money, but it usually hurts teamwork and ideas.
Key Concepts
Competitive Advantage
Resource Utilization
Market Dynamics
Topic
Business Strategy
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1A company has recently gained a competitive advantage in its market. Which underlying cause is most likely responsible for this change?
mediumBusiness
Practice
2
Question 2A company has recently gained a competitive advantage in its market. Which underlying cause is most likely responsible for this change?
mediumBusiness
Practice
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