Question

MiamiLaser is a manufacturer of industrial lasers and has a new, technology that allows its customers to manufacture their products more precisely with a higher level of consistency and at a lower cost than they could previously. MIamiLaser's executives believe that no rivals have a similar technology and that it would be very difficult for rivals to copy this technology since the benefits of the new technology can only be realized within MiamiLaser's system, which includes processes that are protected by trade secrets, making it difficult for rivals to understand how the company's new technology has the effect of generating competitive advantage. This dffficulty rivals face to match or capture MiamiLaser's competitive advantage is an illustration of _________.

Answer 1

Casual Ambiguity

Step-by-step explanation:

Causal Ambiguity is the situation where it is hard or even impossible to relate the consequences or effects of a phenomenon to its initial states or causes. One area were this phenomenon is well known is the development of the prices of shares, options, futures, and similar products on exchanges. Just like Miami Laser's new technology, which is difficult for rivals to match or capture their competitive advantage.

Answer 2

Casual ambiguity

Step-by-step explanation:

Causal ambiguity is a limiting factor to imitability, that is, the company resources cannot be easily imitated by its competitors. It is embedded in the relationship between a firm's business inputs and outputs, it helps protect any competitive advantage that the firm may have from imitation, and it thus helps protect superior firm performance.