Question

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?

Answer 1

Answer:  This case is an example of core competencies that further have turned into core rigidities.

In this particular case , the store was capable of catering to the demands of the market. Thus providing excellent service and technical advice.

But with the dawn of an era, now the store is earning lower-than-average returns. Also this is to be pondered upon that in current era only few potential customers are able to appreciate the premium quality of the fabrics.