The combination of firm-specific and valuable and firm-specific allows a company to possess a core competency, 10 A company is unlikely to sustain its competitive advantage when Competitors have low absorptive capacity Competitors have low strategic commitment It takes competitors a long time to imitate a core competency There is low rate of product innovation in the industry 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 Backward vertical integration Tapered integration Horizontal integration Forward vertical integration 13 Which of the following is not a benefit of related diversification? C) Use of core competencies to increase overall performance of the company Fair allocation of resources and capital across business units based on performance Linkages among business units lead to greater profits Transferring and leveraging core competencies into business units in a new industry