Question

Merton's Toothpaste has been the leader of dental care products for about 40 years. However, this company relied too long on its competency of reducing cavities without refining or upgrading other aspects of its product. As a result, other personal hygiene companies that began to offer toothpastes with natural whitening agents gained a competitive advantage over Merton's. This case is an example of:

Answer 1

Answer:

Core rigidity

Explanation:

Core rigidity is a situation whereby a company that has gained a competitive advantage in time past, which made it financially successful, now becomes relaxed and failing to improve on their success. As they rely on the past competitive advantage they have for too long, other companies now control a large part of the market share as they now come up with a better improvement lacking in the products produced by the company who relies on its previous advantages for too long.

The case of Merton’s Toothpaste is a very good example of core rigidity, as Merton relied on its competency of reducing cavity for too long while failing to improve on other aspects of its product.

Answer 2

Answer:

Core rigidity

Explanation:

According to a different source, these are the options that come with this question:

• resource flow.
• dynamic capabilities.
• core rigidity.
• value chain.

This is an example of core rigidity. Core rigidity refers to a situation that can arise in business in which a company relies on its advantages for too long. Companies that find themselves stuck due to core rigidity usually do not improve themselves. Moreover, they tend to become obsolete and often struggle to compete with other firms that are more adaptable or innovative than them.