Question

Pure Carat Inc. is a company that sells 24-carat gold biscuits to companies that manufacture
jewelry. Since the company operates in an industry where many other suppliers sell standardized products, it can most likely

A. easily achieve a temporary competitive advantage.
B. easily achieve a sustainable competitive advantage.
C. only achieve competitive parity.
D. maintain its absolute advantage for long time.

Answer 1

Answer:

The answer is Pure Carat Inc will only achieve competitive parity.

Explanation:

Competitive parity is when a company gets standard results that other companies in the industry are getting.

In this case, the 24 carat gold biscuits supplied by Pre Carat Inc are essentially the same as the standard products other companies are selling. The only difference is that it comes in 10 gram biscuit shapes.

This innovation is open to all other companies, and they may also start to sell gold biscuits, so Pure Carat Inc does not have a competitive advantage.