Question

Ancho Corp. is an automobile company whose core competency lies in manufacturing petrol- anddiesel-based cars. The company realizes that more of its potential customers are switching toelectric cars. The R&D department of the company acquires competencies in developing electriccars and launches its first hybrid car, which uses both gas and electricity. In this scenario, Ancho is primarily___________.

a. leveraging new core competencies to improve current market position.
b. redeploying existing core competencies to compete in future markets.
c. unlearning existing core competencies to create and compete in markets of the future.
d. building new core competencies to protect and extend current market position.

Answer 1

(D). Building new core competencies to protect and extend current market position.

Step-by-step explanation:

An organization derives its core competencies from the combination of its resources and capabilities.

These core competencies give the organization, competitive advantage over other competitors in the market.

Organizations must develop and exploit its core competencies in relation to the needs of customers if they are to remain relevant.

Ancho Corp, has acquired new competencies to build the first hybrid car using gas and electricity.

By doing so, the organization is keeping its current customers happy and also extending its market position.

Answer 2

Correct answer is (d). building new core competencies to protect and extend current market position.

Step-by-step explanation:

The Research and Development department must relate with the general manager to come up with strategic planning to develop new core competencies to protect and extend current market position.