A company achieves a sustainable competitive advantage when
A)its distinctive product offering is trumped by rivals' products.
B)it pursues a best-cost provider strategy.
C)competitors erode or imitate its efforts to attain a competitive advantage.
D)an attractively large number of buyers develop a durable preference for its rivals' offerings of products or services.
E)it develops capabilities proven difficult for competitors to imitate or best.

Question

Quizplus · Accepted Answer

A sustainable competitive advantage is achieved when a company develops capabilities that are difficult for competitors to imitate or best. This enables the company to maintain its advantage over an extended period of time, despite efforts by competitors to erode or imitate its advantage. Options A, B, C, and D all suggest situations where the company's competitive advantage is not sustained, and therefore do not describe a sustainable competitive advantage.

A Company Achieves a Sustainable Competitive Advantage When