Final answer:
Best practices in operations management alone don't guarantee a competitive advantage due to factors like market competition, comparative advantage, and economies of scale influencing business success. Intense competition demands innovation and strategic positioning for firms to remain profitable, as better or cheaper products from rivals can threaten their market share and existence.
Step-by-step explanation:
Applying the best practices to operations management is not enough to give a competitive advantage because the business landscape is also shaped by factors such as market competition, comparative advantage, and pressures from economies of scale. In markets with intense competition, firms continuously strive for innovation to stay ahead. However, in monopoly situations, the lack of competitive pressure can lead companies to a position where they no longer need to be the best to succeed, potentially stifling innovation and growth. Moreover, smaller economies with fewer competitive firms face less pressure to meet consumer demands in terms of quality and price, which can lead to inefficiencies.
Firms that operate in competitive markets must contend with the risk of reduced profits or even being driven out of business if other companies can offer better or cheaper products. Thus, while good operations management is crucial, it must be combined with strategic positioning and continuous innovation to ensure long-term success and profitability in a competitive market.