Firms that do not add value can still be very profitable and

Firms that do not add value can still be very profitable and competitive.

true or false

Solution

Is true

If the product of the firm is at peak cycle of it product life cycle that no other value is currently being added. The firm can still be profitable and competitive based on the case that it\'s competitors are still lacking to achieve that product or the firm has niche or differentiate product which can\'t be imitate.

The firm might be playing on low cost strategy which may be hard for its competitors to sustain