Many telecom firms began digging up the ground and laying webs of fiberglass to meet the growing demand for Internet connectivity. However, rivals and startups began to imitate these firms and soon these new assets were not so rare and each day they seemed to be less valuable. It can be inferred from this example that:

Question

BlackTom AI · Accepted Answer

The resource-based view (RBV) assesses firm resources by whether they are Valuable, Rare, Inimitable, and Non-substitutable (the VRIN criteria). Competitive advantage arises when a firm controls resources that satisfy these criteria. If rivals can easily copy a resource, its rarity and inimitability disappear and any advantage erodes.

Step-by-step reasoning from the example:
1. Firms invested in underground fiber (a tangible asset) to meet growing Internet demand. Initially this asset was scarce and valuable, giving early investors an advantage (higher market share, pricing power).
2. Rivals and startups imitated the strategy—digging and laying fiber themselves. This increased the supply of the same asset across the industry.
3. As the resource became common, its rarity and therefore its ability to confer a sustained competitive advantage diminished. The daily observation that the assets “seemed to be less valuable” reflects declining marginal strategic value once imitation occurs.
4. The key inference: firms should evaluate not only current growth opportunities but whether the resources that would be acquired are likely to remain VRIN. If they are easily replicated, entry solely because of observable market growth can lead to poor strategic outcomes.

Why the given answer is correct:
- It captures the RBV lesson: resource-based thinking prompts firms to assess sustainability of advantages and avoid carelessly entering markets based only on visible growth.
- The example precisely illustrates imitation reducing rarity and value, which is the central RBV warning.

Why alternative inferences would be incorrect (typical distractors):
- “First movers always win” is false here—the example shows first-mover advantage eroded by imitation.
- “Growth alone justifies entry” is contradicted: growth with easily imitable resources yields little long-term benefit.
- “Infrastructure investment is always profitable” is too general; profitability depends on resource characteristics.

Conclusion: The correct inference is that resource-based thinking can help avoid the trap of carelessly entering markets simply because growth is spotted, which matches the provided answer.

类似问题

Question at position 27 Firm X possesses valuable resources that are neither rare nor costly to imitate. What is the most likely outcome for Firm X?sustained competitive advantagecompetitive paritycompetitive disadvantagetemporary advantage

Over time, a resource of the Fast & Furious movies included off screen drama. This resource is: Access PDF Here: Click to open: Download Fast & Furious & Way Less Expensive. A Star Film Franchise Gets a Reality Check. - WSJ.pdf Manage Alternates

Over time, the resources of the Fast & Furious movies changed to include , which are __. Access PDF Here: Click to open: Download Fast & Furious & Way Less Expensive. A Star Film Franchise Gets a Reality Check. - WSJ.pdf Manage Alternates

Competitive parity exists when a resource is:

A firm’s resource is rare because demand for it is low. Which conclusion best reflects RBV logic?

According to the resource-based view, there is a growing trend showing that a firm’s competitive advantage often stems from its

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