Question

Gladiator Apparel is the market leader in the sportswear industry. Though most of its resources are common to those of its competitors, a few rare resources have helped the company gain and sustain a competitive advantage. Which of the following assets of Gladiator Apparel is most likely to be considered a rare resource that is contributing to its competitive advantage?

a) The company's land and buildings
b) The company's plant and machinery
c) The company's raw material supplies
d) The company's design patents

Answer 1

The correct option is (d)

Step-by-step explanation:

Competitive advantage refers to the edge a company has over its competitors for its unique product, design or high demand.

Competitive advantage is obtained only when a company's product is unique or distinct in terms of price, quality, design or use.

Here, Gladiator company is a market leader as it derived competitive advantage from design patents that its competitors do not have. Rest of the resources like land and building, machinery and plant and raw materials are common to all.