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ACCA Strategic Professional · Strategic Business Leader · The internal resources, capabilities and competences of an organisation

Brindle Telecom has invested heavily in a network of base stations, a customer database and a billing system. A strategy review finds that all five major competitors have equivalent assets and similar standards of performance, and that customers regard these as the minimum needed to be considered a supplier. How should these resources and competences be classified?

These are threshold resources and competences: they are the minimum an operator needs to be accepted by customers and to stay in the market. Since all five competitors hold equivalent assets and performance, they cannot by themselves give Brindle a competitive advantage.

  1. AThreshold resources and competences, needed to compete but not a source of advantageCorrect
  2. BUnique resources that provide a sustained competitive advantage
  3. CDynamic capabilities that renew the organisation's competences
  4. DCore competences that competitors cannot imitate

Explanation

Threshold resources and competences are those required to meet customers' minimum requirements and to stay in the market. Because all competitors hold equivalent ones, they do not differentiate Brindle. They would be unique or core only if rivals lacked them or could not imitate them.

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