CA Intermediate · Financial Management and Strategic Management · Strategic Analysis: Internal Environment
Bharat Dairy Ltd. holds a leading position in several cities because it can run a cold chain that blends supplier management, logistics technology and trained staff, and this ability lets it enter many product categories such as paneer, curd and ice cream. Rivals cannot copy it quickly. As per Prahalad and Hamel's tests, which feature of a core competence is shown by its usefulness across many products?
The feature shown is that the competence provides potential access to a wide variety of markets. Because the cold-chain capability supports paneer, curd and ice cream alike, it opens many product categories, which is the first of the tests for a core competence.
- AProvides potential access to a wide variety of marketsCorrect
- BIs difficult for competitors to imitate
- CMakes a significant contribution to perceived customer benefit
- DIs a tangible asset on the books
Explanation
The three tests are access to a variety of markets, contribution to perceived customer benefit, and difficulty of imitation. Entry into many categories shows the first test. Difficulty of imitation is a separate feature, mentioned but not the one asked.
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