Question

The key to maintaining competitive advantage, according to Dr. W.E. Deming as well as your textbook authors, is:

A) being committed to constant improvement.
B) being first to market with all products.
C) outsourcing key components.
D) challenging all market leaders.
E) stressing low-price advantage in all areas.

Answer 1

The key to maintaining competitive advantage is being committed to constant improvement, which fuels innovation, cost reduction, and consumer interest.

Step-by-step explanation:

The key to maintaining competitive advantage, according to Dr. W.E. Deming as well as textbook authors, is being committed to constant improvement. This principle aligns with the idea that market competition drives firms to innovate, both to reduce costs and to offer new or improved product characteristics that consumers desire. For example, as Gregory Lee, CEO of Samsung, emphasized, the 'relentless pursuit of new innovation' is critical for consumer engagement and maintaining a temporary edge over competitors, allowing the firm to earn above-normal profits. This constant search for improvements and innovation is crucial for a firm to remain competitive, especially since real-world markets are not perfectly competitive and large-scale production can significantly lower average costs.