Question

Cajemp Inc. is a real estate developer that has been in the market for several years. Most real estate developers are now constructing their projects using concrete blocks as they are more durable and easier to lay out when compared to traditional brick and mortar. Cajemp, however, has been reluctant to use concrete blocks because its brick and mortar houses have been selling well so far. They will continue to sell the same even if new competitors and better products enter the market. Which of the following concepts is illustrated in this scenario?

a. Strategic dissonanceb. Strategic alliancec. Competitive inertiad. Competitive advantage

Answer 1

Answer: competitive inertia

Explanation: Competitive inertia or corporate inertia refers to a company that is rigid in its way of operations and refuses to change its way of thinking as per the changing norms in the industry.

In the given case, Cajemp inc. is refusing to start making building from concrete blocks in place of brick and mortar due to their positive past experiences.

Hence from the above we can conclude that the given case illustrates competitive inertia.