A sustainable competitive advantage can be easily acquired and maintained through the use of arbitrage.

Question

Quizplus · Accepted Answer

Arbitrage is a temporary profit-making strategy that involves buying and selling the same asset in different markets to take advantage of price discrepancies. It is not a sustainable competitive advantage as other market participants can also engage in arbitrage and erode the profit potential. A sustainable competitive advantage requires a unique set of resources, capabilities or market position that allows a company to consistently outperform its rivals over the long-term.

A Sustainable Competitive Advantage Can Be Easily Acquired and Maintained