Competitive Advantage And Competitive Advantages

1627 Words Apr 8th, 2016 7 Pages
With the breakneck advancements in today’s market, having sustainable competitive advantage has become imperative so as to survive. The metamorphosis of technology has made the job further challenging to have a competitive advantage and sustain it. Competitive advantage is defined as an idiosyncratic lead a firm has over its fellow challengers and emulators. This lead enables the firm to vanquish its challenger. In other words it is something that distinguishes an organization from the competitors. For a competitive advantage to be sustainable, the firm has create value creating products or services that cannot be mirrored or matched by its fellow competitors and thereby it will able to outlast for a longer period of time (Bharadwaj, S, Varadarajan, P, & Fahy, J 1993) Sustainable competitive advantage entirely depends on how an organization performs in a competitive environment. In order to sustain and consolidate the company’s position, innovation becomes crucial. Companies should be in a position to embrace the changes in order to be abreast of the competition and hold its position (Daniela, P ,2014). Apart from innovation, the internal and the external forces along with the knowledge management form the vital factors. For an organization to gain the competitive advantage and sustain it, it has to innovate and globalize the vital factors mentioned.
Theories:
Let us discuss these factors with theories
Resource Based View (RBV) : As the name suggests , this theory…
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