Question

An advantage based on inimitability won't last forever. Competitors will eventually discover a way to copy the most valuable resources. However, managers can forestall competitors and sustain profits for a while by developing strategies around resources that have at least one of the following four characteristics: _________________________.

Answer 1

Answer:

The correct answer is: physical uniqueness, path dependency, causal ambiguity, and social complexity.

Explanation:

Companies constantly look for developing a competitive advantage so the product or service they offer outstands competitors. Four (4) are the characteristics that companies should try to accomplish if an attempt to provide products with differential advantage to the market:  

• Physical uniqueness: resources are scarce.
• Path dependency: the methods to obtain a competitive advantage are not easy to develop.
• Causal ambiguity: competitors cannot distinguish what causes originating the advantage.
• Social complexity: organizational culture and human capital are too complicated to be replicated.