Tim’s ToothCream has been the leader of dental care products for about 40 years. However, this company relied too long on its competency of reducing cavities without refining or upgrading other aspects of its product. As a result, other personal hygiene companies that began to offer toothpastes with natural whitening agents gained a competitive advantage over Tim’s ToothCream. This case is an example of

core ridigity.

Explanation:

Analyzing the above scenario, it is correct to state that this case is an example of core rigidity, which occurs when a company has a favorable market position that makes it dependent, not using innovation in its processes to prepare for possible external changes, such as improvement technology and its production processes.

This is the case of Tim's ToothCream, which as a leader in dental care products for 40 years, did not realize the innovation of its competitors who used toothpastes with natural products, and gained a competitive advantage over Tim's ToothCream.

For a company to be successful and competitive in the market in the long term, its strategy must be reviewed and updated, always meeting the needs and desires of its target audience.

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