The value chain explains why an entity has a competitive advantage
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
Which of following is correct? (a)The value chain explains why an entity has a competitive advantage; (b) The value chain examines how an organisation has a competitive advantage; (c)It provides answers on how an organisation elects to compete; (d) It helps an entity to determine the steps to be taken beat its rivals on price
Expert Solution

Step 1
Competitive advantage is the ability to produce products and services with more efficiency than rivals, which leads them to gain more profit margins, build brand loyalty and attract a wider range of customers towards the products and services of the company. It helps businesses to distinguish themselves from their competitors and make them unique in the market.
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