ACCA Applied Knowledge · Business and Technology · Technological factors
A retail company is considering selling through a new mobile app. Which of the following is the most direct way in which technological change can create a competitive advantage for the company?
The most direct competitive benefit of new technology such as a mobile app is that it can lower the cost of reaching customers and make buying more convenient than rivals offer. It does not remove legal duties, prevent imitation, or protect existing jobs.
- AIt allows the company to reach customers at lower cost and offer a more convenient service than rivalsCorrect
- BIt removes the need for the company to comply with consumer protection rules
- CIt guarantees that competitors will be unable to copy the service
- DIt ensures that all existing employees keep their current roles
Explanation
Technology such as a mobile app can lower the cost of reaching customers and improve convenience, which can differentiate the business. It does not remove legal obligations, cannot guarantee that rivals fail to imitate it, and often changes job roles rather than preserving them.
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