Question

The competitive advantage that one firm has will be short-lived in an industry in which

A) Resource immobility is high.
B) Perfect competition exists.
C) Resource heterogeneity is high.
D) Capabilities of a firm are not easily replicable.

Answer 1

A firm's competitive advantage will be short-lived in an industry in which the capabilities of a firm are not easily replicable.

Step-by-step explanation:

The competitive advantage that one firm has will be short-lived in an industry in which capabilities of a firm are not easily replicable.

In a competitive industry, if a firm's capabilities are easily replicable, other firms can quickly imitate or adopt those capabilities, reducing the firm's advantage. The firm's competitive advantage will not last long. For example, if a firm develops a new innovative technology, it's competitive advantage will be short-lived if other firms can quickly develop the same technology or a similar one.