Final answer:
The renowned brand of Mercedes-Benz is considered a competitive advantage, attributing to its long-standing reputation for quality and luxury in the automobile industry, and is cultivated through its core competency in producing high-quality vehicles.
Step-by-step explanation:
The well-known brand name and reputation of Mercedes-Benz automobiles represents a competitive advantage for Mercedes-Benz. This is because a competitive advantage is something that allows a company to outperform its competitors, often due to attributes such as a strong brand, excellent reputation, unique product offerings, or superior service. In the case of Mercedes-Benz, their competitive advantage comes from a well-respected brand name that has been carefully cultivated over many years, which acts as a symbol of quality and luxury in the automobile market. A company's core competency can also contribute to a competitive advantage, especially when it revolves around specializing in a narrow product lineup that the company can produce exceptionally well.