Gene Craft Inc. is the market leader in the pharmaceutical industry. Though most of its resources are common to those of its competitors, a few rare resources have helped the company gain and sustain a competitive advantage. Which of the following assets of Gene Craft Inc. is most likely to be considered a rare resource that is best contributing to its competitive advantage?

A. The company's land and buildings

B. The company's plant and machinery

C. The company's raw material supplies

D. The company's chemical patents

The company’s chemical patents; option D

Explanation:

First, to properly answer this question, we need to know what is meant by the term competitive advantage.

The term competitive advantage refers to the availability of some conditions that places the company better as a superior business compared to its contemporaries. It simply refers to the surrounding or underlying circumstances that gives a business an edge over its competitors.

Now let’s look at the options given and evaluate their correctness.

A. Is wrong

The company’s land advantage does not confer any competitive advantage to the company

B is wrong

While this might be correct to an extent, it is not entirely correct. This is because even with a a high level plant and machinery, the unavailability of something tangible to be produced renders them

C is wrong

While it may be true to an extent, it is not correct in its entirety

D is right

This is because it is the actual drive that is making the product of the company compete better in the market. It is their patents that stands them out from competition

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