Question

Note: For the resource-based questions, please use the following definitions for the four categories of resources: Physical (property, plant, equipment, technology, intellectual property, etc.), Human (key people at all levels, their judgment, skills, knowledge, etc.), Organizational (culture, structure, processes, relationships, partnerships, etc.), and Financial (retained earnings, cash, access to capital markets, bonds, etc.)

Also recall that a resource is Valuable to the degree it helps a firm raise revenues or lower costs. It is Rare to the degree that it is possessed by fewer firms in the industry or sector. It is Inimitable (difficult to imitate) to the degree that costs and/time associated with acquiring the resource are high. And it is Well-organized to the degree that it is aligned and complementary to the firms other resources.

DC, which is Marvel’s long-time rival, happened on an innovation--a team of superheroes called The Justice League--which became “a surprise hit.” Marvel responded with a team of its own—the Fantastic Four. Assume that these new ensembles represented some kind of resource for both Marvel and DC and that result was increase sales and profits. Which statement of the following statements is most accurate?

Group of answer choices

This new resource was rare

This new resource was valuable

This new resource was rare but not valuable.

This new resource was difficult to imitate.

Answer 1

Both DC and Marvel introduced their teams with good success. DC introduced a new innovation called the justice league and Marvel introduced a team called the fantastic four. The result was enhanced sales and profits for both DC and Marvel and both these companies use some similar resources.

The resource is known as valuable when the company raises revenue by using that resource and reduces cost. Therefore, the resource is valuable to both DC and Marvel. The resource can be rare when the fewer firms can have this resource in the market. But the new resource of innovation that comprises human expertise and other resources used by Both DC and Marvel reflect that the new resource was not rare. Certainly the option ‘new resource was rare but not valuable’ is wrong because the new resource provides enhanced sales and profits to both DC and Marvel. Next, the resource can become inimitable only when the cost and time associated with acquiring the resource are high. After DC developed a new resource, Marvel also developed similar resource as the case reveals that both DC and Marvel use some of same kinds of resources. It means that the resource was not inimitable. Therefore, the correct option is ‘the new resource was valuable’. Other options such as resource was rare, or was difficult to imitate are not correct. Also, the option ‘resource was rare but not valuable’ is incorrect because both DC and Marvel by using the same resource enhance sales and profits. Therefore the option ‘the new resource was valuable’ is correct.