The sustainability of a competitive advantage depends upon the rate of obsolescence of the core competence, the availability of substitutes for the core competence, and the imitability of the core competenc e T/F

The correct answer is True.

Explanation:

Currently, market competition, traditional conditions and factors, such as labor, access to financial resources and raw materials, offer less competitive advantages than in the past. Current trends require that

the top executives of the companies consider new concepts for their organizations, it is necessary to change the current way of seeing the organizations.

As a first step, it is necessary to visualize the company as a set of heterogeneous resources, capabilities and core skills that can be used to create an advantage over other companies in the market. This implies that each company has resources and capabilities that other companies do not have, at least not in the same combination. Resources are the source of capabilities, some of these lead to the development of core skills. Using core skills, companies can develop their activities better than their competitors. In essence, this new overview bases the strategy in terms of a unique competitive position, rather than operational efficiency.

As a source of competitive advantage, core skills distinguish a company at the competitive level and reflect its personality. These skills arise over time through an organizational process that consists of accumulating and learning  to take advantage of the various resources and capabilities. As an ability to take action, core skills “... constitute the essence of what makes an organization unique in its ability to offer value to customers during a

long period".

The development of human resources prepares individuals to perform new functions and fulfill more specific responsibilities, simultaneously constitutes a powerful weapon against phenomena such as the obsolescence of staff knowledge, social and technical changes and the turnover rate .

True

Explanation: The rate of obsolescence of the core competence affects the sustainability of competitive advantage of a company whereby the managers must acquire modern analytical strategies and administrative formats.The less availability of the substitutes for the core competence the more the sustainability of competitive advantage. The less imitable and more innovative the core competence is, the more the sustainability of competitive advantage. This means it should be difficult to duplicate for the competitive advantage to be sustained.

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