Question

In 1921, hamburgers were thought to be made from rotten beef and not fit for human consumption. Ingram ground fresh beef in front of customers to prove it was safe and was the first to successfully sell hamburgers to the middle class. Today, Ingram is credited as the founder of the fast-food industry. He could not, however, convert new information about social and cultural changes into his strategic plans. White Castle has 330 locations, and McDonald's has 25,000 stores. What technology difficulty did White Castle have vs other fast food chains that hindered its growth rate? a. White Castle was unable to change raw data into useful information as well as its competitors could. b. The competitive advantage White Castle achieved from being first was not sustainable. c. White Castle lost its pioneering differential. d. Product diffusion rates were slow.

Answer 1

b) The competitive advantage White Castle achieved from being first was not sustainable.

Step-by-step explanation:

It is evident that White Castle was the first to open such a store. However, non-technological innovations are not sustainable in the long run, as they usually cannot be patented or protected from competition.

When competitors (McDonalds) followed the same or similar business model, they have advanced and incorporated new competitive advantages that defined the new market leader. Sticking with the advantage from being first does not guarantee long-term success, as it is always possible to become overridden by competition and their takes on the initial innovation or business model.