Final answer:
A firm gains a competitive advantage through competitive priorities which include Cost, quality, speed, and flexibility. Innovation and product differentiation are key strategies for outperforming competitors and achieving above-normal profits.
Step-by-step explanation:
A firm gains a competitive advantage by outperforming competitors in terms of competitive priorities, which fall into four major groups: Cost, quality, speed, and flexibility. By focusing on these areas, businesses can set themselves apart and meet consumer demands more effectively.
In the context of profits and market competition, firms that innovate can create products that are cheaper to produce or have unique characteristics which consumers desire. As observed by Gregory Lee, CEO of Samsung, a firm that continuously seeks new innovation gains a temporary edge over its competitors, leading to the possibility of earning above-normal profits before the competition catches up.
Differentiating products is another crucial strategy for gaining a competitive edge. This can be achieved by varying the physical aspects of the product, its location, intangible aspects, and managing consumer perceptions of the product. These differentiated products enable a firm to stand out in the crowded marketplace.
Therefore, the corret answar is a) Cost, quality, speed, flexibility