Question

Which of the following can give an enterprise dealing in instant coffee a competitive edge ?

• A. Quality, taste and location
• B. Population increase in the city
• C. Ambience and customer relationship
• D. (1) and (3) only

Answer 1

The Correct Option is D

To determine which factors can give an enterprise dealing in instant coffee a competitive edge, we need to evaluate the impact of each option provided:

1. Quality, taste, and location:

   These are crucial components for any business in the food and beverage sector. High quality and good taste can attract more customers and ensure repeat business. A strategic location can enhance visibility and accessibility, thereby increasing footfall. Therefore, this option significantly contributes to a competitive edge.

2. Population increase in the city:

   Although an increased population may present more potential customers, it does not directly confer a competitive advantage to a specific enterprise. All businesses can potentially benefit from a population increase, but it does not inherently improve one business over its competitors.

3. Ambience and customer relationship:

   A pleasant ambience can enhance the customer's experience, and good customer relationships can increase customer loyalty. Both of these factors are critical in distinguishing one business from another and are key to obtaining a competitive edge.

Thus, the correct answer is the option that includes factors with the strongest potential to directly impact competitive advantage:

• Option (1) and Option (3) are directly within the control of the enterprise and can significantly differentiate it in the marketplace.
• Therefore, the answer is (1) and (3) only, as they directly contribute to gaining a competitive edge by enhancing product and service distinctiveness.