Seth's Computer Repair has maintained a competitive advantage based on its thorough and professional service, reasonable pricing, and money-back guarantee. Management at the company is so committed to doing repairs well that they often have rejected employee suggestions to expedite their processes. Recently, the company has begun to lose customers to a new local service offering same day in-home repairs and 24/7 online customer support. According to the dynamic capabilities perspective, Seth's Computer Repair has lost its competitive advantage due to

a. core rigidity

b. resource flows

c. resource stocks

d. value chain disruption

The correct answer is letter "A": core rigidity.

Explanation:

A competitive advantage is an advantage that a firm has over its competitors. It could be a comparative advantage if the company has a lower opportunity cost in its production process and a differential advantage if the product manufactured by the company has a unique feature.

Seth's Computer Repair big failure relies on not listening to its internal consumers: its employees. Employers can provide companies valuable feedback that could determine the course of the business. For that reason, in front of the entry of a new competitor in the market, Seth's lost part of its customers since they kept applying the same rigid, obsolete method that worked previously.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: