Question

A firm's core competencies, integrated with an understanding of the results of studying the conditions in the external environment, should: a. increase the firm's market share. b. drive the selection of strategies. c. guarantee profits. d. lead to a first-mover advantage.

Answer 1

Answer:

b. drive the selection of strategies.

Explanation:

Core competencies: It is the unique selling point of a company that give them edge over its competitors. Sometime core competency is so powerful that it create monpoly market for the company or for any particular product. It give competitive advantages over other rivals in the market.

The 4 Criteria of Sustainable Competitive Advantage:

• Valuable.
• Rare.
• Cost of imitate.
• Non availalblity of a subtitute.

In the given case, core competencies are intergrated with the understanding of the results of studying the conditions in the external environment, where external environment are macro economy factors that affect business.