Question

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in ____________________________.

Answer 1

Full question:

Nordstrom's, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service has probably resulted in:

A.) product design excellence

B.) mission statement satisfaction

C.) sustainable price decrease

D.) a sustainable competitive advantage

E.) producer excellence

Answer:

This reputation for excellent customer service has probably resulted in:  a sustainable competitive advantage

Explanation:

Sustainable competitive advantages are firm assets, properties, or capabilities that are hard to replicate or beat; and render a better or complementary long term opinion over opponents. Value investors hunt for firms that are bargains. To withdraw acquiring a value trap one of the circumstances we explore for is sustainable competitive advantages.

Without one or more sustainable competitive advantages a firm may not be capable to grow from whatever prompted the stock to suit a bargain.  Economies of scale and effective operations can support a company to hold competition out by being the low-cost provider.