Seth's Computer Repair has maintained a competitive advantage based on its thorough and professional service, reasonable pricing, and money-back guarantee. Management at the company is so committed to doing repairs well that they often have rejected employee suggestions to expedite their processes. Recently, the company has begun to lose customers to a new local service offering same day in-home repairs and 24/7 online customer support. According to the dynamic capabilities perspective, Seth's Computer Repair has lost its competitive advantage due to

The correct answer is letter "B": core rigidity.

Explanation:

A competitive advantage is an advantage that a company has over its competitors. It could be a comparative advantage if the company had a lower opportunity cost in its production process or a differential advantage if the product produced by the company has a unique feature.

The big failure of Seth's Computer Repair depends on not listening to its internal consumers: their workers. Employers may provide useful input to businesses that could influence the direction of the operations. For that reason, Seth's lost part of its customers when a new competitor entered the market because they kept implementing the same rigid, outdated approach that had worked before.