Question

Merton's Toothpaste has been the leader of dental care products for about 40 years. However, this company relied too long on its competency of reducing cavities without refining or upgrading other aspects of its product. As a result, other personal hygiene companies that began to offer toothpastes with natural whitening agents gained a competitive advantage over Merton's. This case is an example of dynamic capabilities. resource flow. core rigidity. value chain.

Answer 1

Core rigidity.

Step-by-step explanation:

In this scenario, Merton's Toothpaste has been the leader of dental care products for about 40 years. However, it relied too long on its competency of reducing cavities without refining or upgrading other aspects of its product. As a result, other personal hygiene companies that began to offer toothpastes with natural whitening agents gained a competitive advantage over Merton's. This case is an example of core rigidity.

Core rigidity is the flip side or contrast of both core capabilities and competency. Core rigidity is usually caused when a successful business entity dwell for too long on advantages, capabilities and competency as a result of its dominant position. However, its rivals in the same industry are evolving, getting better and gradually taking over the market because the successful business entity didn't improve or become innovative.

In conclusion, when Merton relied too long on its competency of reducing cavities without refining or upgrading other aspects of its product, other personal hygiene companies that began to offer toothpastes with natural whitening agents gained a competitive advantage over Merton's.