Which of the following is listed as an example of competitive advantage?

• A. Global expansion and cost cutting strategies
• B. Low prices, strong advertising, high quality, corporate responsibility
• C. Exclusive distribution rights
• D. Poor product design

Answer: (B)

The main idea is that competitive advantage comes from delivering greater value to customers or doing so at lower cost than rivals, creating a position that’s hard to beat. This option combines several powerful levers: low prices can attract more buyers and expand market share; strong advertising builds a recognizable, trusted brand; high quality differentiates the offering and can justify premium value; and corporate responsibility signals ethical practices that can win loyalty and reduce risk. Together, these elements create a compelling value proposition and the capabilities to sustain it, which is what makes this a real competitive advantage rather than just a collection of separate tactics.

The other ideas describe actions or conditions that don’t alone establish a durable edge: expanding globally and cutting costs are important tactics but don’t by themselves define a lasting advantage; exclusive distribution rights help access but aren’t a complete overall position; and poor product design clearly undermines value and cannot be an advantage.