1. When evaluating the sustainability of a firm's competitive advantage, which of the following statements is not true?
A. The competitive advantage will not be sustainable if there are substitutes for the firm's core competence.
B. If managed effectively, existing core competencies can help sustain the competitive advantage indefinitely.
C. Social complexity often leads to a competitive advantage that is sustainable.
D. When expectations of future resource value turn out to be accurate and can be repeated, then a sustained competitive advantage is realized.
2. Which of the following best explains why a blue ocean strategy is difficult to implement?
A. It requires the combination of fundamentally similar strategic positions—differentiation and low cost.
B. It requires the reconciliation of fundamentally different strategic positions—differentiation and low cost.
C. It requires the combination of fundamentally similar strategic positions—differentiation and strategic trade-offs.
D. It requires the reconciliation of fundamentally different strategic positions—differentiation and strategic trade-offs.