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

Tessaro Motors can match rivals on safety certification, dealer coverage and warranty terms, which all car makers must offer to compete. Which description best fits these capabilities in Johnson, Scholes and Whittington's terms?

These are threshold capabilities, the minimum resources and competences needed to compete in the market. Because every rival has them, they do not provide sustained competitive advantage on their own.

  1. AUnique resources that give sustained advantage
  2. BThreshold capabilities needed to compete but not sufficient for advantageCorrect
  3. CCore competences that rivals cannot imitate
  4. DDynamic capabilities that reconfigure the resource base

Explanation

Threshold capabilities are the minimum needed to meet customers' requirements and stay in the market. Because all rivals have them, they give no advantage by themselves. Unique resources and core competences must be valuable and hard to imitate, which these are not.

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