Final answer:
To withstand hyper competition, firms must develop core competencies through nonstop innovation and learning. This enhances productivity and competitive advantage in a market driven by globalization and technological advancement.
Step-by-step explanation:
In order to cope with hyper competition, firms need to develop core competencies through continuous learning. The relentless pursuit of new innovation, as emphasized by Gregory Lee, CEO of Samsung, is imperative for firms to maintain and gain a competitive edge in the market. As market competition fosters the discovery of new technologies and production methods, businesses can earn higher profits by producing more efficiently or by offering products with desirable features that consumers seek.
Leveraging continuous learning enables firms to engage in specialized productions, take advantage of economies of scale, and enhance worker productivity. Furthermore, embracing the dynamic nature of comparative advantage, which can evolve through acquired skills and innovation in the value chain, allows firms to adapt to ongoing changes in market advantage. With globalization and advances in communication and information, competition has intensified, making it crucial for businesses to constantly innovate and learn to remain successful.