GK
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -False: The actions of rivals that affect a firm’s competitive advantage include, but are not limited to entry into the market, substitute products, and cost. A new firm’s entry into the market has a significant effect on a firm’s competitive advantage.
Detailed explanation-2: -Waste is not a competitive advantage.
Detailed explanation-3: -Basic economic theory demonstrates that when firms have to compete for customers, it leads to lower prices, higher quality goods and services, greater variety, and more innovation. [1] Competition is critical not only in product markets, but also in labor markets.
Detailed explanation-4: -The four primary methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies and strategic alliances.