A firm achieving competitive advantage today theoretically has a better chance of achieving competitive advantage tomorrow compared to firms with lower profitability.

Question

Quizplus · Accepted Answer

A firm with a competitive advantage today has a better chance of achieving competitive advantage tomorrow because it has the resources and capabilities to sustain its advantage. These resources and capabilities can include things like brand recognition, customer loyalty, and economies of scale. Firms with lower profitability are less likely to have these resources and capabilities, and are therefore less likely to be able to sustain a competitive advantage.

A Firm Achieving Competitive Advantage Today Theoretically Has a Better