Which of the following is a possible source of sustainable competitive advantage under the positioning view?

Prepare for the CIMA Managing Performance (E2) Exam. Practice with flashcards and multiple-choice questions, each with explanations. Get ready for your exam!

Multiple Choice

Which of the following is a possible source of sustainable competitive advantage under the positioning view?

Explanation:
The positioning view looks for sustainable advantage in how a firm stands apart in the market through value offered to customers, cost efficiency, or its overall market presence. This option fits best because it captures the main ways a firm can hold a defendable position: differentiating products or services so customers see unique value, achieving lower costs to compete on price or margins, or building a large market share that strengthens scale, brand presence, and bargaining power against rivals. Each of these creates a position that is harder for competitors to erase over time, underpinning sustained performance. By contrast, exclusive licensing deals rely on external arrangements that can change or be terminated; high advertising spend alone isn’t a durable differentiator since rivals can imitate or outspend, and frequent rebranding tends to confuse customers and doesn’t establish a lasting, defendable position.

The positioning view looks for sustainable advantage in how a firm stands apart in the market through value offered to customers, cost efficiency, or its overall market presence. This option fits best because it captures the main ways a firm can hold a defendable position: differentiating products or services so customers see unique value, achieving lower costs to compete on price or margins, or building a large market share that strengthens scale, brand presence, and bargaining power against rivals. Each of these creates a position that is harder for competitors to erase over time, underpinning sustained performance.

By contrast, exclusive licensing deals rely on external arrangements that can change or be terminated; high advertising spend alone isn’t a durable differentiator since rivals can imitate or outspend, and frequent rebranding tends to confuse customers and doesn’t establish a lasting, defendable position.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy