Final answer:
Responsiveness to customers' needs is a critical element in creating a competitive advantage.
Step-by-step explanation:
The statement 'A critical element in creating a competitive advantage is responsiveness to customers' needs' is true.
Being responsive to customers' needs means that a company understands and anticipates what its customers want and tailors its products and services to meet those needs. By doing so, the company is able to differentiate itself from its competitors and attract more customers.
For example, consider a company that sells smartphones. If this company is responsive to its customers' needs, it will continuously gather feedback from its customers about what features they want in a smartphone. It will then use this feedback to develop new products or update existing ones to meet those needs. This proactive approach not only helps the company retain its existing customers but also attracts new ones who are looking for a smartphone that meets their specific requirements.