Question

A firm is likely to have a competitive advantage when it performs at a level similar to the other firms in the industry. provides goods similar to those of its competitors, but at a higher price. provides services that consumers will value more than those of its rivals. minimizes the difference between value creation and the costs involved.

Answer 1

A firm is likely to have a competitive advantage when it provides services that consumers will value more than those of its rivals. The only way that the firm can create competitive advantage is by providing the services that are not offered by its rivals. So if the firm can give some new experience to its customers that are not given by rivals then the firm can get competitive advantage.