CA Inter P6 · Chapter 12 · Question 2 of 10
Under the four criteria used to identify capabilities that are core competencies (and a source of sustainable competitive advantage), a capability qualifies when it is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Valuable, rare, costly to imitate and non-substitutable
Explanation
Capabilities that are valuable, rare, costly to imitate and non-substitutable are core competencies. A valuable capability that many rivals possess gives no advantage to any one of them. A capability that is easy to imitate or has a strategic equivalent cannot sustain an advantage. All four criteria must be met.
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