When a resource or capability is valuable

and rare, a firm may gain a

a. sustainable competitive advantage.

b. competitive parity.

c. cost advantage.

d. temporary competitive advantage.

 

 Which of the following is critical for a

firm adopting a long-term cost-reduction

strategy?

a. The firm must also differentiate its

product or service.

b. The strategy reduces costs by at least

10%.

c. The strategy is focused on reducing

internal production costs.

d. The methods of achieving cost reductions are difficult to imitate.