ITPEC FE Morning April 2023 Question 69
ITPEC FE Morning April 2023 — Question 69 of 80
Core Technology for Competitive Advantage — identify what makes a technology a source of competitive edge.
A core technology is a proprietary technology that competitors cannot easily imitate, giving the company a sustainable competitive advantage.
(c) is correct: an idle reduction technology that cannot be imitated by competitors — this is the definition of core technology.
Why not others:
- (a) — uses general components available to everyone → no uniqueness
- (b) — uses the same CPU core as competitors → no differentiation
- (d) — creates standard interfaces through an alliance → shared by all members, no exclusivity
Key rule: Core technology = unique + hard to imitate. Words like "general", "same as competitors", "standard", "common" signal it is NOT a core technology.
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