A company is unlikely to sustain its competitive advantage when Competitors have low strategic commitment There is low rate of product innovation in the industry It takes competitors a long time to imitate a core competency Competitors have low absorptive capacity 12 Suppose the supply chain for a clothing industry is as follows: Raw materials > Parts manufacturing > Final assembly > Retailer > Customer If a final assembly company wants to expand into the manufacturing industry, it is pursuing a Horizontal integration Tapered integration Backward vertical integration Forward vertical integration 13 Which of the following is not a benefit of related diversification? Transferring and leveraging core competencies into business units in a new industry Use of core competencies to increase overall performance of the company Linkages among business units lead to greater profits Fair allocation of resources and capital across business units based on performance 16 Which of the following is the definition of product proliferation? Review Later The development of new or improved products that replace the existing products Products cater to the needs of all market segments and everything is served in the market, so there is no opportunity for new competitors to enter the industry Companies provide long-run commitment to the market by investing in research and development of products Companies charges prices which are below what is required to maximize profits in the short-run to deter entry of new competitors