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The trust that a firm has built between itself and its suppliers is an example of a costly-to-imitate capability that other firms cannot easily develop

One criterion for a resource or capability to be a source of competitive advantage is that it must allow the firm to perform a value-creating activity that competitors cannot perform

A competitive advantage:

Valuable capabilities allow the firm to exploit strengths or neutralize weaknesses in the internal environment

Firms should never outsource a primary activity because of the danger of the activity being imitated by rivals

In analyzing the demographic segment of the general environment, one typically examines all of the following factors EXCEPT:

Capabilities are usually developed separately from specific functional areas such as manufacturing, R&D, and marketing

Value is measured by the variable and fixed costs associated with the production and marketing of a particular product compared with the revenue and profits the product generates

It is increasingly difficult for a firm to develop and sustain a competitive advantage because of the effects of globalization and:

Walmart uses core competencies, such as information technology and distribution channels, to create value for its customers through its “everyday low prices.”