Question

A company has identified a core competency in providing telecommunications services for mid-sized businesses through a combination of simple technology and software, excellent customer service, and low-cost hardware. As competitors gain ground in competing for mid-sized companies, this core competency might become a core rigidity if the:

Answer 1

A company's core competency in telecommunications can become a core rigidity if it doesn't adapt to market changes and competitors' innovations.

Step-by-step explanation:

A company that possesses a core competency in providing telecommunications services is at risk of this competency turning into a core rigidity if it fails to adapt to changes, such as competitors entering the market with innovative solutions or better offerings.

Core competencies allow businesses to focus and excel in their chosen area. However, sticking too closely to a once-successful strategy without evolving with the market can transform a competitive advantage into a disadvantage, as flexibility is crucial in responding to industry changes and maintaining market relevance.