How does a sustainable competitive advantage differ from a competitive advantage?

Asked By: Jerrold Elya | Last Updated: 28th February, 2020
Category: business and finance human resources
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Competitive advantage is something you do better than any of your competitors. A sustainable competitive advantage is something that an organization or individual does better than all competition over a long period of time.

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Similarly, it is asked, how does a sustainable competitive advantage differ from a competitive advantage quizlet?

- Firms use their resources to improve organizational effectiveness and efficiency. - The goal of most organizational strategies is to create and then sustain a competitive advantage. Sustainable competitive advantage. - when other companies cannot duplicate the value a firm is providing to customers.

Secondly, is a competitive advantage sustainable? Sustainable competitive advantages are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.

Similarly, you may ask, what is the difference between a strength a competitive advantage and a sustainable competitive advantage?

Because if your competitive advantage(s) list is only comprised of strengths it is not a “competitiveadvantage. Your competitive advantage is what your organization does better than anyone else. The sustainable part refers to your ability to continue to do those things over a long period of time.

What company has a sustainable competitive advantage?

Being recognized all over the world as a respected brand is a sustained competitive advantage that companies such as Virgin, Apple and Coca cola have used as leverage to hold the market sway for years. Virgin is a company that has used its brand name as leverage to break into new markets in completely new territories.

35 Related Question Answers Found

What is a sustainable competitive advantage quizlet?

A sustainable competitive advantage occurs when an organisation uses organisation-specific resources to accomplish something its rivals cannot.

How can firms best maintain competitive advantage quizlet?

Firms can maintain competitive advantage by: Reinforcing the brand image through merchandise, service, and promotion. A mission statement: Defines the scope of activities a firm plans to undertake.

What are some of the ways that companies typically implement a competitive strategy?

What are some of the ways that companies typically implement a competitive strategy? True or false: It is easier for rivals to imitate a company's product line than it is for them to duplicate its capabilities.

  • outperform rivals.
  • achieve superior profitability.
  • support growth.

What are the two basic ways that companies achieve competitive advantage over their business rivals?

Michael Porter defined the two ways in which an organization can achieve competitive advantage over its rivals: cost advantage and differentiation advantage. Cost advantage is when a business provides the same products and services as its competitors, albeit at a lesser cost.

Which of the following is a condition that must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

Four conditions must be met if a firm's resources are to be used to achieve sustainable competitive advantage which are Resources must be valuable, rare, imperfectly imitable, non substitutable. Resource that allows companies to improve efficiency and effectiveness.

Which of the following is likely the most important decision a company makes during the strategic planning process?

Selecting an appropriate target market may be the most important decision a company makes in the strategic planning process and is crucial for strategic success. The target market must be chosen before the organization can adapt its marketing mix to meet the customers' needs and preferences.

What is one key characteristic of a focused low cost strategy?

What is one key characteristic of a focused low-cost strategy? A) it seeks to sell a broad market segment. B) it seeks to sell to a narrow market niche.

How can organizational restructuring enable specific types of businesses to attain competitive advantage in a changing market?

Restructuring gives companies the ability to concentrate on the productive areas and this ensures that the products or services it provides are of quality and meet customer expectations which enable them create a competitive advantage.

What do you mean by competitive advantage?

A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

How do you create a competitive advantage?

The four primary methods of gaining a competitive advantage are cost leadership, differentiation, defensive strategies and strategic alliances.
  1. Same Product, Lower Price.
  2. Different Products With Different Attributes.
  3. Hold Your Positions Through Defensive Strategies.
  4. Pool Resources Through Strategic Alliances.

Why is it so important for a firm to identify its core competencies?

The most important advantage of having core competencies is having a long term competitive advantage. These competencies help in bridging the gap between performance and opportunity, thus helping a company in being a potential leader in the industry. Core competencies also help in the development of core products.

What are advantages of organization?

To benefit from a strong framework, it is important to understand the advantages of organizational structure.
  • Unify Your Marketing Message.
  • Promote Upward Mobility.
  • Ease Strategic Planning.
  • Improve Employee Training.
  • Refine the Decision Making Process.

What makes an ability or set of abilities a core competency?

Ability or set of abilities are the distinctive skills and uniqueness of an organization or an employee which is identified as the core competence and facilitates to gain competitive advantage in the market. A core competence is not merchandise or service explicit.

What is competitive advantage example?

Examples of Competitive Advantage
Access to natural resources that are restricted to competitors. Highly skilled labor. A unique geographic location. Access to new or proprietary technology. Like all assets, intangible assets are those that are expected to generate economic returns for the company in the future.

How can a firm maintain sustainable competitive advantage?

Porter outlined the three primary ways companies achieve a sustainable advantage. They are cost leadership, differentiation, and focus. Cost leadership means companies provide reasonable value at a lower price. Firms do this by continuously improving operational efficiency.

Why sustainable competitive advantage is important?

Sustainable competitive advantage is the key to business success. It is the force that enables a business to have greater focus, more sales, better profit margins, and higher customer and staff retention than competitors. Cost advantage: the business competes on price.

What are the 6 factors of competitive advantage?

There are 6 sources of competitive advantage.
  • People. People are the driving force behind most competitive advantage.
  • Organizational Culture & Structure.
  • Processes & Practices.
  • Products & Intellectual Property.
  • Capital & Natural Resources.
  • Technology.