Question

Seth's Computer Repair has maintained a competitive advantage based on its thorough and professional service, reasonable pricing, and money-back guarantee. Management at the company is so committed to doing repairs well that they often have rejected employee suggestions to expedite their processes. Recently, the company has begun to lose customers to a new local service offering same day in-home repairs and 24/7 online customer support. According to the dynamic capabilities perspective, Seth's Computer Repair has lost its competitive advantage due to
a. core rigidity

b. resource flows

c. resource stocks

d. value chain disruption

Answer 1

Answer:

The correct answer is letter "A": core rigidity.

Explanation:

A competitive advantage is an advantage that a firm has over its competitors. It could be a comparative advantage if the company has a lower opportunity cost in its production process and a differential advantage if the product manufactured by the company has a unique feature.

Seth's Computer Repair big failure relies on not listening to its internal consumers: its employees. Employers can provide companies valuable feedback that could determine the course of the business. For that reason, in front of the entry of a new competitor in the market, Seth's lost part of its customers since they kept applying the same rigid, obsolete method that worked previously.