QUESTION $12$

You are the CEO of BearKat Technologies, a tech company, and have recently undertaken a review of your company's strategy. In comparing your stock market valuation to that of your closest competitor, you note that your firm is currently valued at $$55$ billion, while your competitor is valued at $$43$ billion. How should you proceed?

Compare your valuation to firms in another industry.

Compare the current valuations with past valuations to determine a trend.

Assume your current strategy has failed and begin to formulate a new one.

Consider this evidence of a sustainable competitive advantage and maintain your current strategy.