Question

Which of the following statements regarding competitive parity and competitive advantage is accurate?

A) Some firms develop valuable, rare, and costly-to-imitate resources and capabilities in being efficient second movers, that is, in rapidly imitating and improving on the product and technological innovations of other firms.
B) Firms that benchmark their performance against the performance of successful competitors can expect to develop at least a temporary competitive advantage.
C) Firms must be first movers to gain competitive advantages.
D) Even if all a firm does is create value in the same way as its competitors, the firm can expect to earn at least a temporary competitive advantage.

Answer 1

The accurate statement regarding competitive parity and competitive advantage is that firms that benchmark their performance against the performance of successful competitors can expect to develop at least a temporary competitive advantage.

Step-by-step explanation:

The accurate statement regarding competitive parity and competitive advantage is B) Firms that benchmark their performance against the performance of successful competitors can expect to develop at least a temporary competitive advantage.

Competitive parity refers to a situation where a firm has resources and capabilities that are comparable to its competitors. On the other hand, competitive advantage refers to a situation where a firm has resources and capabilities that are unique and difficult for competitors to replicate.

Benchmarking performance against successful competitors allows firms to identify areas where they need improvement and learn best practices from their competitors. By continuously seeking to match or outperform their competitors, firms can gain a temporary competitive advantage.