A sustainable competitive advantage is
A) rarely appreciated by the firm's owners.
B) of little consequence to profitability.
C) an idealized position that is unachievable in reality.
D) a value-creating industry position that is likely to endure over time.

Question

Quizplus · Accepted Answer

A sustainable competitive advantage is essentially a value-creating position that can withstand competitors' attempts to erode it. Such a position can provide long-term profitability to the firm that possesses it. Thus, option D is the correct answer. The other options are incorrect; owners typically place a premium on sustainable competitive advantages, it is crucial to profitability, and while challenging, a sustainable competitive advantage can be achieved by building and fortifying market dominance over the long term.

A Sustainable Competitive Advantage Is