The long-run sustainability of competitive advantage requires managing effectively in the nonmarket environment.

Question

Quizplus · Accepted Answer

Competitive advantage in the market is not sufficient alone for long-term sustainability. Companies must also effectively manage relationships with stakeholders in the nonmarket environment, such as government, communities, and interest groups. This includes issues related to regulations, reputation, social responsibility, and other nonmarket forces that can impact a company's success.

The Long-Run Sustainability of Competitive Advantage Requires Managing Effectively in the Nonmarket