Question

Firms possessing certain core competencies are more likely to create competitive advantages based on these competencies. However, before a competitive advantage can be translated into specific customer benefits, the firm’s _____ must recognize that its competencies give it an advantage over the competition.

Answer 1

The answer is: target markets

Step-by-step explanation:

This is something that should be obvious, a company may have a great product with excellent specifications, capacities, etc. that give them competitive advantages over the competition, but if their market (the customers) don´t realize that the company´s product is that good, then the competitive advantage vanishes.

E.g. you own a restaurant and your new chef makes the most delicious pasta in town, but if your customers only associate your restaurant with Mexican food, then your chef´s excellent abilities are worthless.