typewriters for almost 30 years. Due to the reduced demand for typewriters today,
both companies' average return on invested capital is approximately -5 percent. The
current industry average is 2 percent. In this scenario, Rapida Inc. and Click Inc. most
likely have
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competitive parity with each other
Brain Boost Inc. is a leading educational toy company. Competitors across the globe
have failed to imitate Brain Boost's production models, supply chain systems,
knowledge systems, and culture. These attributes have remained unique to Brain
Boost Inc. for a long time. Which of the following assumptions of the resource-based
model of competitive advantage does this scenario best illustrate?
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, resource immobility
Competitive rivalry based solely on ________ is destructive to firms as it transfers most of
the value created in the industry to the customers.
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price-cutting
Online retailer NetShop had been drastically losing market share to its competitors.
The management hired a reputed consulting firm to advise the company. The experts
from the consulting firm pointed out that the company primarily lost out on its
competitive advantage due to its poor customer service, including slow response
times to customer inquiries and unclear return policies. These ineffective policies and
procedures led to many disgruntled customers and a steady migration to more
customer-friendly retailers. NetShop can best solve its problem by working on its
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support activities.
Crystal Tech Inc.'s competency in designing and manufacturing efficient
microprocessors has made its laptops the most advanced computers in the market.
This competency, along with the just-in-time manufacturing system, has enabled
Crystal Tech Inc. to increase its profitability by lowering its production costs. Thus,
Crystal's competency in designing and manufacturing microprocessors will be
considered a(n) ________ resource in the VRIO framework.
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