Question

Freulia Inc. manufactures and sells stationery and office supplies. It is beginning to lose its competitive advantage with the entry of new competitors. In this case, to gain a sustainable competitive advantage, what should Freulia do?

Answer 1

Answer:

The answer is: rebuild its own competitive advantages

Explanation:

Core competencies give a company their competitive advantages, but as time goes on they tend to become core rigidities (e.g. Kodak's competitive advantage was based on its photographic film, but technology made affordable digital cameras available and Kodak went bankrupt).

Every company must rebuild their competitive advantages to adapt them to changing scenarios, cultures and technologies (e.g. Coke, Diet Coke and Coke Zero).

Freulia Inc. has to develop or modify their competitive advantages to keep doing business.