Final answer:
A strategy providing a sustainable competitive advantage differentiates a company from its rivals and can lead to above-average profitability. This could be achieved through innovation, a strong brand name, or a focus on core competencies like in Samsung's case. The correct answer option in the context provided is (a).
Step-by-step explanation:
Understanding Sustainable Competitive Advantage
A strategy that distinguishes a company from its rivals and provides a sustainable competitive advantage is crucial for long-term success in the business world. Such a strategy ensures that a company can maintain a unique position in the market, potentially leading to above-average profitability. This could be achieved through several means such as:
- A patented invention which grants exclusive rights to the company to use and profit from a product or process.
- A well-respected brand name that has taken years to develop and fosters customer loyalty.
- A specialization in a core competency, focusing on a limited range of products and doing them exceptionally well.
Success in business often comes from having a competitive edge—being able to produce goods more cheaply or innovatively, like Samsung's approach to constant innovation. This temporary edge can result in the company earning above-normal profits until competitors catch up. Moreover, by having a focused strategy on a few key areas, businesses can often outperform firms with a diversified but less focused product range.
Based on the provided options, the correct answer to the question is (a) A strategy that distinguishes a company from its rivals and provides a sustainable competitive advantage is a company's most reliable ticket to above-average profitability.