Which of the following statements about competitive advantage is true?
A) It is unaffected by the strategies taken by the company.
B) Sustainability is achieved when it lasts for three months.
C) It exists only when the company's profitability is greater than the 10 highest grossing firms in the world.
D) It exists only when the company's profitability is greater than the average profitability and profit growth of its rivals.
E) It is seldom affected by the business model of the company.

Question

Quizplus · Accepted Answer

Competitive advantage exists only when the company's profitability is greater than the average profitability and profit growth of its rivals. This definition of competitive advantage takes into account the performance of the company's competitors and is therefore relative to the industry and market in which the company operates. It is not fixed and can be impacted by changes in the market and strategies taken by competitors. Sustainability of a competitive advantage is not defined by a set time period, but rather by the ability of the company to maintain its superior profitability over time. The size of the company or its business model are not factors in determining competitive advantage.

Which of the Following Statements About Competitive Advantage Is True