Answer:
C) upgrade its engineering department and improve its supply chain.
Explanation:
The whole concept of core competencies is that they are positive traits that distinguish a company from its competitors. But core competencies can turn into core rigidities if they are not updated continuously.
For example, the core competency of Kodak was its photographic film, but as technology and digital cameras (and then cellphones) became widely used, very few people needed photographic film. By insisting on its core competency, Kodak turned it into a core rigidity that finally made it go bankrupt.
If Cartech wishes to sustain its competitive advantage, it must continuously improve its core competencies. In this case, it must do it by upgrading their engineering department and improving its supply chain.
