ABC Industries is the leader in its market for producing high-quality cat food for cats that require special diets. While it has been able to sustain competitive advantage for years, ABC's management has implemented a strategic framework that focuses on why the firm has been so successful in its market.
ABC Industries has implemented which type of strategic framework?
- Industry structure analysis.
- Core competencies analysis.
- Segmentation analysis.
- None of the above.
Answer(s): B
Explanation:
Choice "b" is correct. Analysis of the core competencies of a firm help it to determine why it is able to create, attain, and sustain new types of competitive advantage and profits and reveal what it is within the firm that enables it to obtain competitive advantage.
Choice "a" is incorrect. Industry structure analysis assists in determining what it is that makes a firm more profitable compared to another firm, and it looks at five forces that influence profitability of an industry or market and, thus, the competitive environment.
Choice "c" is incorrect. Segmentation analysis is a possibility when a firm is vertically integrated and when the industry structure and core competencies vary among activities in the value chain.
Choice "d" is incorrect, as choice "b" is the answer to the question.