Question

The ability of Disney to maintain its competitive advantage through proprietary rights to its characters would be severely weakened if: a. theme parks with alternative cartoon characters were built in large numbers. b. Disney's cartoon characters became widely perceived as old-fashioned and unappealing. c. Disney attempted to move beyond its traditional industry. d. numerous lawsuits against copyright thieves tainted the reputation of the company.

Answer 1

Disney's ability to maintain its competitive advantage by having proprietary rights to its characters severely weakens if b. Disney's cartoon characters became widely perceived as old-fashioned and unappealing.

Disney uses the competitive advantage to differentiate its cartoon characters from competitors and to maintain the high quality of its services. However, if the customers' perception changes because the cartoon characters have become old-fashioned, their attractive value will reduce.

This change of perception hampers the ability of Disney to continue to win based on this competitive advantage. Other factors that can help Disney maintain its competitive advantage are quality, strategic pricing, market positing, access to technology, and innovations.

Thus, retention of proprietary rights to its cartoon characters, Disney is assured of continuous quality.

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