SJobs’s Computer Repair has maintained a competitive advantage based on its thorough and professional service, reasonable pricing, and money-back guarantee. Management at the company is so committed to doing repairs well that they often have rejected employee suggestions to expedite their processes. Recently, the company has begun to lose customers to a new local service offering same day in-home repairs and 24/7 online customer support. According to they dynamic capabilities perspective, SJobs’s Computer Repair has lost its competitive advantage due to

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BlackTom AI · Accepted Answer

The question asks us to interpret why SJobs’s Computer Repair has lost its competitive advantage from a dynamic capabilities perspective.
First, recall that dynamic capabilities refer to a firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. When a company relies on well-established routines and strengths but fails to adapt, it risks becoming rigid.
In this scenario, the firm has a history of thorough and professional service, reasonable pricing, and a money-back guarantee, and leadership resists expediency in order to uphold quality. This strong emphasis on existing processes and the reluctance to modify them illustrate core rigidity: the organization is tightly coupled to its current capabilities and routines and cannot quickly reconfigure to meet new competitive threats (e.g., same-day in-home repairs and 24/7 online support).
Because competitors now offer faster, more responsive services, SJobs’s is vulnerable unless it can reconfigure its capabilities to match or surpass those offerings. Core rigidity explains the erosion of competitive advantage because it captures the trap of over-reliance on established ways of operating without the flexibility to adapt to a changing environment.
Regarding potential pitfalls in other interpretations: if one suggested that the advantage eroded due to price competition alone, that would ignore the dynamic-capabilities lens which emphasizes adaptability and reconfiguration, not just price. If another option claimed that the firm merely lost customers due to poor marketing, that would fail to connect the loss to an inability to reconfigure in response to new service expectations. The dynamic capabilities framework specifically highlights rigidity in the face of market change as the root issue, rather than isolated operational inefficiencies or external marketing factors.
Thus, the explanation centers on how the organization’s commitment to existing high-quality processes, without evolving them to support faster and more customer-centric offerings, leads to diminished competitiveness through core rigidity.

33:620:492:01 BUS POLICY & STRAT Exam 1

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