Question
Shippity and ShipING are two competing firms in the same industry. Shippitys tangible assets are valued at $15 billion and its intangible assets are valued
Shippity and ShipING are two competing firms in the same industry. Shippitys tangible assets are valued at $15 billion and its intangible assets are valued at $35 billion. ShipINGs tangible assets are valued at $5 billion and its intangible assets are valued at $45 billion. What can be concluded from this information?
A. Judging from the assets listed, ShipING has probably been in the industry a much shorter time than Shippity.
B. There is no resource heterogeneity between the two firms as they operate in the same industry.
C. ShipING will be less competitive than Shippity because of its smaller investment in tangible assets.
D. It is likely that ShipING is better enabled than Shippity to gain and sustain a competitive advantage.
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