Question

When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be:

A) searching for loose bricks.
B) changing the rules of engagement.
C) collaborating.
D) building layers of advantage.
E) innovating.

Answer 1

Management choosing not to follow conventional wisdom and seeking new ways to gain competitive advantage can be described as innovating, which allows the company to differentiate products or services and potentially earn higher profits before competition catches up.

Step-by-step explanation:

When company management decides to eschew the conventional wisdom in favor of finding new ways to achieve a competitive advantage, this strategy might best be described as E) innovating. Innovation enables firms to differentiate their products, reduce production costs, or create new markets. An innovative firm often gains a temporary edge over competitors, allowing it to earn above-normal profits before competitors can emulate or catch up to their new business methods or products.

As an example, Samsung's CEO Gregory Lee emphasizes that a 'relentless pursuit of new innovation' is essential in discovering a diverse array of possibilities with technology. Firms must navigate the evolving landscape of restrictive practices, where laws and regulations are continually redefined, to maintain their competitive stance while still operating within legal parameters.