A company has identified a core competency in providing telecommunications services for mid-sized businesses through a combination of simple technology and software, excellent customer service, and low-cost hardware. As competitors gain ground in competing for mid-sized companies, this core competency might become a core rigidity if the?
1) cost of hardware rises, thereby increasing the company's costs of production
2) company doesn't keep up with advances in technology and customers begin to expect greater value from the technology
3) company chooses to shift its focus to large-scale enterprises to offer its products and services
4) company starts to target smaller businesses with its bundle of capabilities
