What is core rigidity?

• A. Over-reliance on a core competency or routine that becomes outdated, reducing adaptability.
• B. Excess diversification.
• C. Inability to innovate due to too many resources.
• D. Strict adherence to market analysis.

Answer: (A)

Core rigidity occurs when a company becomes locked into a single core capability or routine that worked in the past but no longer fits the changing environment. That strong attachment makes the organization inflexible, so it continues to apply the same methods, processes, and investments even as customer needs, technology, or competition evolve. The rigidity prevents spotting new opportunities or reallocating resources effectively, leading to a decline in performance as the outside world moves on.

This is why the option describing over-reliance on a core competency or routine that becomes outdated and reduces adaptability is the best fit. It captures both the source of the rigidity and its consequence. The other ideas point to different dynamics—diversification spreads focus, having too many resources doesn’t inherently cause inflexibility, and strict market analysis can slow decisions but doesn’t by itself embody the stubborn internal routine that core rigidity describes.