To adjust to competitive advantages not being sustainable, a firm must:

• A. Exploit current advantages
• B. Use resources and capabilities to develop new, future competitive advantages
• C. Ignore current advantages
• D. Rely on external partners exclusively

Answer: (B)

Competitive advantages aren’t permanent, so a firm must continually reconfigure and renew its assets and routines to stay ahead. Using existing resources and capabilities to develop new, future competitive advantages shows how a company can leverage what it already has to create value as the market evolves. This dynamic approach contrasts with clinging to current advantages, which can erode, or ignoring them, which wastes valuable assets. Relying only on external partners can limit internal learning and flexibility, whereas building new advantages keeps the organization adaptable and forward-looking.