Final answer:
Competitive advantage is broader than just doing something particularly well and includes strategies such as product differentiation. It also encompasses factors that enhance a firm's market position. Therefore, the statement in the question is false.
Step-by-step explanation:
The question relates to the concept of competitive advantage, which can be misunderstood. Competitive advantage is not just about doing something especially well compared to rivals; it involves creating a unique position in the market through various means, such as product differentiation, cost leadership, or niche strategies. Product differentiation is a key action that firms use to make their products distinguishable from their competitors', helping to build a competitive advantage. This could include better quality, unique features, additional services, or an innovative marketing campaign.
However, having a competitive edge also depends on factors like the education and productivity of workers, economies of scale, and the firm’s position in the value chain. Furthermore, competition in the market typically drives innovation and efficiency, which can benefit consumers with better and less expensive products, and can even elevate the industry standard. In a perfectly competitive market, firms have less control over their competitive advantage since the market dictates terms like price, leaving quantity produced as their main decision variable.
Given the context, the statement in the question would be considered false because competitive advantage encompasses more than just doing something well; it's a broader strategy that includes various factors enhancing a firm's position in the market relative to its competitors.