Competitive advantage of a firm does not imply

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lower price for same value

same price for higher value

same price and same value

matching core competencies to the opportunities

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC SO-Steno – 2017

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The correct answer is C. Competitive advantage implies offering something better than rivals, not the same price and same value.

Competitive advantage is achieved when a firm offers superior value to its customers compared to its rivals. This can be done in two primary ways:
A) Offering the same value (same quality/features) at a lower price (cost leadership).
B) Offering higher value (better quality/features) at the same price (differentiation).
C) Offering the same price and same value relative to competitors implies parity, not competitive advantage.
D) Matching core competencies to opportunities is a strategic process or strategy formulation that *leads* to competitive advantage, but it is not the definition of the advantage itself. The advantage is the *result* of this matching process.
The question asks what competitive advantage *does not imply*.

Michael Porter’s framework on competitive strategy identifies two basic types of competitive advantage: cost leadership and differentiation. Both involve providing superior value compared to competitors, either through lower cost or unique benefits.

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