The essential elements a firm must excel at to survive and thrive in its industry, including product attributes, operational approaches, resources, and capabilities, are known as what?

The essential elements a firm must excel at to survive and thrive in its industry, including product attributes, operational approaches, resources, and capabilities, are known as what?

• A. Core processes
• B. Competitive capabilities
• C. Key success factors
• D. Critical resources

Answer: (C)

The main concept being tested is identifying the factors that determine whether a firm can win in its industry. The essential elements a firm must excel at to survive and thrive—product attributes, operational approaches, resources, and capabilities—are known as key success factors. Key success factors are the performance areas the market rewards and that drive competitive advantage. They are industry-specific and reflect what customers value and what rivals must match or exceed. A firm that prioritizes and outperforms on these factors tends to achieve better market position, profits, and growth. For example, in consumer electronics, important KSFs might include product quality, speed to market, and innovative features; in airlines, on-time performance, safety, and cost efficiency are typically KSFs. Core processes describe how a company runs its operations—crucial for efficiency and quality but not the same as the industry-wide determinants of success. Competitive capabilities are the abilities a firm has that let it compete, but KSFs focus on what the market says is necessary to win. Critical resources are assets the firm uses, yet KSFs capture the broader set of performance areas that the industry expects to be excelled at.

The main concept being tested is identifying the factors that determine whether a firm can win in its industry. The essential elements a firm must excel at to survive and thrive—product attributes, operational approaches, resources, and capabilities—are known as key success factors.

Key success factors are the performance areas the market rewards and that drive competitive advantage. They are industry-specific and reflect what customers value and what rivals must match or exceed. A firm that prioritizes and outperforms on these factors tends to achieve better market position, profits, and growth. For example, in consumer electronics, important KSFs might include product quality, speed to market, and innovative features; in airlines, on-time performance, safety, and cost efficiency are typically KSFs.

Core processes describe how a company runs its operations—crucial for efficiency and quality but not the same as the industry-wide determinants of success. Competitive capabilities are the abilities a firm has that let it compete, but KSFs focus on what the market says is necessary to win. Critical resources are assets the firm uses, yet KSFs capture the broader set of performance areas that the industry expects to be excelled at.