Competitors have found it extremely difficult to imitate Gene Electronics Inc.'s valuable resources, capabilities, or competenci
es. This is primarily because the source for the company's success has been unclear. The competitors are uncertain if Gene Electronics Inc.'s success is due to its strong leadership, the skills of its research and development team, or the timing of the company' s product introductions. Gene Electronics Inc. has been protected from losing its competitive advantage as a result of
In this specific scenario, it can be said that they have been protected from losing its competitive advantage as a result of Causal Ambiguity. This term refers to a situation where it is hard or even impossible to relate the consequences or effects of a phenomenon to its initial states or causes. This is the case because Gene Electonics Inc's success (phenomenon) cannot be traced back to an initial cause, which makes it impossible to replicate. Therefore, no other company can compete.
Services are a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible and do not result in the ownership of anything.
This would actually decrease Larry's revenue per engine sold, but the quantity supplied should increase. The change in Larry's total revenue will depend on the price elasticity of demand. Total revenue could either decrease or increase depending on its PED: