A competitive advantage becomes a sustainable competitive advantage when:
A) a company collaborates with its competitors to obtain a larger market share.
B) other companies cannot duplicate the value a firm is providing to customers.
C) a company uses a competitive move designed to reduce a rival's market share or profits.
D) market commonality is large, and companies have overlapping products or services.

Question

Quizplus · Accepted Answer

A competitive advantage is sustainable when other companies are unable to replicate the value that a firm is providing to its customers. This could be due to various reasons such as unique resources, patents, brand recognition, or customer loyalty. When the advantage cannot be easily duplicated, it can be sustained for a long time. Collaboration with competitors, use of aggressive competitive moves, or market commonality do not necessarily lead to sustainable competitive advantage.

A Competitive Advantage Becomes a Sustainable Competitive Advantage When