Grant argues that resources in efficient financial markets are equally available to all participants, but in industrial markets resources are "specialized, immobile, and long-lasting." What opportunity does he suggest that this disparity provides in industrial markets, but denies to financial markets?

Question

Business

Abraham Church

3 April, 07:37

Grant argues that resources in efficient financial markets are equally available to all participants, but in industrial markets resources are "specialized, immobile, and long-lasting." What opportunity does he suggest that this disparity provides in industrial markets, but denies to financial markets?

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Answers (2)

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Alan Acosta · Answer 1

An opportunity for sustainable competitive advantage

Explanation:

Sustainable competitive advantage refers to the uniqueness that a business has that makes it stand out among its peers.

Among the key things that creates sustainable competitive advantage are strategic assets, distinct brands, low-cost advantage.

A company that has discovered a rear vaccine for a major disease may go ahead to patent it such that for a number of years a competitor is prevented from producing its kind.

Some companies' powerful brands gives them a strong edge when compared to other businesses because consumers naturally have a loyalty for such powerful brands.

Low cost advantage means the ability to produce at very low cost per unit which then translates to selling at a lower than competitor's price and gaining a larger market share

Hassan Black · Answer 2

The opportunity was purchasing shares to specific customers.