Question

Mainline Ltd. is a landline telephone manufacturer whose average return on invested capital is approximately 2 percent. Because demand for landline telephones has declined significantly, the industry average return on invested capital has been negative (–5 percent) for the last few years. In this scenario, Mainline Ltd. has a:

Answer 1

Answer:

competitive advantage                    

Explanation:

In industry, the quality that helps a company to surpass its rivals, is called its competitive advantage. A competitive advantage might include availability of resources, like higher-grade ores as well as small-cost energy sources, highly qualified workers, geographical position, high entry hurdles and access to better technologies.

When it comes to explaining competitive edge, the value proposition is essential. When the value proposition is successful, that is, when the value concept provides higher and more consistent value to consumers, it can yield a significant advantage either in the good or service. The value proposition will rising the perceptions and preferences of the customers.