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if a resource or capability is valuable and rare but not costly to imitate (copy)exploiting this resource will generate a:

Question

If a resource or capability is valuable and rare but not costly to imitate (copy)exploiting this resource will generate a:

Answer

4.1 (219 Votes)
Verificación de expertos
Opal Elite · Tutor for 8 years

Answer

Temporary competitive advantage.

Explanation

## Step 1:This question is related to the Resource-Based View (RBV) of the firm, which is a framework in strategic management that describes and predicts the level of competitive advantage based on the value, rarity, inimitability, and non-substitutability (VRIN) of resources. ## Step 2:According to the VRIN framework, a resource that is valuable and rare can provide a competitive advantage. However, if it is not costly to imitate, it means that the resource is not inimitable. ## Step 3:When a resource is valuable, rare, but not costly to imitate, it can provide a temporary competitive advantage. This is because other firms can easily copy the resource, making it no longer rare over time.