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Leading Guitar String Producer Wound Up Inc

Question 4

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Leading guitar string producer Wound Up Inc. has enjoyed a competitive advantage based on its proprietary coating that gives its strings a clearer sound and longer lifespan than uncoated strings. One of Wound Up's competitors, however, has recently developed a similar coating using less expensive ingredients, which allows it to charge a lower price than Wound Up for similar-quality strings. Wound Up's competitive advantage is in danger due to


A) a lack of perceived value.
B) a lack of organization.
C) direct imitation and substitution.
D) resource immobility.

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