Firms can create ________ when they are able to perform value chain activities more effectively or efficiently than their competitors.

A) consumer loyalty
B) core competencies
C) logistical strengths
D) competitive advantage

Competitive advantage refers to a firm's ability to outperform its competitors in terms of value creation or delivering the same value at a lower cost. This is achieved when the firm can perform value chain activities more effectively or efficiently compared to competitors, which can lead to lower costs, higher quality, or better customer service, among other advantages. Core competencies, consumer loyalty, and logistical strengths are important elements of a firm's strategy, but they are not directly linked to the firm's ability to outperform competitors.