Rohit Patel has a small chemist shop in the central part of Ahmedabad. What kind of competencies Rohit can build to gain competitive advantage over…

CA Intermediate · Financial Management and Strategic Management · MTP · January 2025
Rohit Patel has a small chemist shop in the central part of Ahmedabad. What kind of competencies Rohit can build to gain competitive advantage over online medicine sellers?

Suggested Answer and Working Notes:

Capabilities that are valuable, rare, costly to imitate, and non-substitutable are core competencies. A small chemist shop has a local presence and functions within a limited geographical area. Still, it can build its own competencies to gain competitive advantage. Rohit Patel can build competencies in the areas of: Developing personal and cordial relations with the customers.Providing home delivery with no additional cost.Developing a system of speedy delivery that can be difficult to match by online sellers. Being in the central part of the city, he can create a network to supply at wider locations in the city.Having extended working hours for convenience of buyers.Providing easy credit or a system of monthly payments to the patients consuming regular medicines.

Topics: Part B: Strategic Management

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