What is required to ensure competitive advantages in specific markets ?
2016
What is required to ensure competitive advantages in specific markets ?
Answer: C. Superior knowledge — ConceptA competitive advantage comes from a resource or capability that creates value in a particular market and cannot be readily imitated by competitors. In…
- A.
Access to capital
- B.
Common office buildings
- C.
Superior knowledge
- D.
Common metals
Attempted by 1 students.
Show answer & explanation
Correct answer: C
Concept
A competitive advantage comes from a resource or capability that creates value in a particular market and cannot be readily imitated by competitors. In the knowledge-based view of the firm, organizational knowledge can serve as such a strategic resource when a market values its application.
Application
The passage explicitly connects superior knowledge with competitive advantage in markets that appreciate the application of that knowledge. Therefore, the required resource is superior knowledge.
Contrast
Access to capital: the passage says that rapid international capital flows make capital alone insufficient for competitive advantage.
Common office buildings: these are ordinary places where semiconductor design can occur; they are not presented as a differentiating resource.
Common metals: these are widely available semiconductor inputs and do not distinguish one organization from another.
Cross-check
The passage also explains that land, labour, and capital are not sufficient by themselves when competitors can obtain or imitate them. This supports superior knowledge as the passage-based answer.
Result
Superior knowledge.