Question

What is competitive advantage? Provide examples of resources and competencies that high-tech firms may possess. Why are resources and competencies especially important for high-tech companies?

Answer 1

Competitive advantage is nothing but when a company is in a condition that allow a company or country to produce a good or service at a lower price or in a more desirable fashion for customers on the whole.

Examples of resources and competencies that high-tech firms may possess - High end technologies, easy raw material processing techniques, high skilled labor etc are the ones that high tech firms possess to have acompetitive advantage.

Having an adequate technology and raw materials can enable you to produce a particular good or offer a service at a lower opportunity cost where you can possess competitive advantage which is indeed desired by every company on the whole.