Final answer:
The correct option is A). A 'loose bricks' strategy refers to exploiting weaknesses in competitors' narrow-focus strategies. It contrasts with broad strategies by targeting specific vulnerabilities in a firm focused heavily on their core competency. This can provide a competitive edge for the exploiting firm.
Step-by-step explanation:
An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a loose bricks strategy. This type of competitive strategy involves identifying and capitalizing on the weaknesses in a competitor's focused approach, typically one that relies heavily on a core competency or a limited scope of products or services. The loose bricks strategy contrasts with other types of strategies, such as those that aim to build competitive advantage through collaboration, creating multiple layers of advantage, leveraging supplier power, or employing generic business tactics.
Firms that center on their core competencies are often more successful because they can concentrate their resources and expertise on delivering highly specialized products or services. However, this focus can also leave them vulnerable to competitors who use a loose bricks strategy to exploit any weaknesses that may arise from such a narrow focus.