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Competitors have found it extremely difficult to imitate Gene Electronics Inc.'s valuable resources, capabilities, or competencies. This is primarily because the source for the company's success has been unclear. The competitors are uncertain if Gene Electronics Inc.'s success is due to its strong leadership, the skills of its research and development team, or the timing of the company' s product introductions. Gene Electronics Inc. has been protected from losing its competitive advantage as a result of _____.a. time compression diseconomiesb. resource homogeneityc. causal ambiguityd. path dependence

Answer :

Answer:

The correct answer is c. causal ambiguity.

Explanation:

Causal ambiguity is the fact of not knowing very well why certain things happen. In the case of the company, it refers to the fact of not knowing why a company that has the same resources and capabilities as another, is able to achieve better results. It is, therefore, a mechanism to isolate the sources of competitive advantages of companies by protecting the company's unique resources and key capabilities from imitation by its competitors. For example, the Coca-Cola company bases the success of its sales on its “secret formula” for the preparation of cola, a formula that none of its most direct competitors have been able to copy.

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