Question

The Scoop, Ltd. is a magazine publishing company whose average return on invested capital is approximately 5 percent. Because magazine publishing is a declining industry, the industry average has been negative (–5 percent) for the last few years. In this scenario, The Scoop Ltd. has a___________.

Answer 1

Competitive advantage

Step-by-step explanation:

Competitive advantage is the advantage or benefit over the competitors that gain through offering the consumer greater value, through means of lower the prices or through offering the greater advantage and the service which justifies the higher prices.

Under this scenario, the company facing the declining and the industry has been negative from the last few years. So, the publishing company has a competitive advantage.