BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Competitive advantage is created by using resources and capabilities to achieve either a lower cost structure or a differentiated product. A firm positions itself in its industry through its choice of low cost or differentiation. This decision is a central component of the firm’s competitive strategy.

Detailed explanation-2: -The competitive advantage is then the final result of using resources, capabilities and competences in the firm’s pursuit of success. The issue of the firm’s strategic potentials occupies an important place in the resource-based strategic management stream.

Detailed explanation-3: -Core competencies are resources and capabilities that serve as a source of a firm’s competitive advantage over rivals. Core competencies distinguish a company competitively and reflect its personality.

Detailed explanation-4: -Which of the following is a true statement about capabilities? Capabilities based on human capital are more vulnerable to obsolescence than other intangible capabilities because of the tendency for employee knowledge to become outdated.