why is a competitive advantage based on heavy investment in Human Resource more sustainable than investment in other types of assets ?
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Explanation
:Competitive advantage based on investment in human assets is more sustainable than investment in other types of assets because of the continued growth/appreciation of human assets and the inability of consumers to duplicate this specific competitive advantage.
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Investing in Human Resources provides a high-profit rate to the company.
- Companies invest in human resources because the main agenda for a company to function and gain profit is to satisfy customer needs.
- For example, let us take the example of a food delivery company like Zomato.
- The company ensures that the customers receive the food on time, the payment method is in the leisure process, the food is well heated, the person who delivers has the right attitude, etc.
- In this way, the customers feel pleasant and glad to order food using this app.
- When the customer's trust and confidence are obtained, then the company gains a lot of profit.
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