Theory of Temporary Competitive Advantage

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Theory of Temporary Competitive Advantage The concept of competitive advantage is a critical one for businesses. This is a key indicator of market visibility, short-term profitability and long-term viability. Whether this advantage is drawn from product quality, customer service, marketing position, brand identity, distribution network or price point, the implementing firm will depend on this competitive advantage for its survival and its success. However, as the literature review here will demonstrate, the terms of competitive advantage are shifting in today's unpredictable marketplace. As the articles selected for consideration here will show, a new perspective has emerged on competitive advantage which indicates that opportunities can be effectively seized and business strategies modeled on temporary competitive advantage. Using the literature hereafter to outline the reasons for and impact of this theoretical shift, the present discussion will provide a basic overview of the theory of temporary competitive advantage. First and foremost, we consider that temporary competitive advantage is no longer the accidental consequence of a declining permanent advantage. In other words, business theory and scholarly research have increasingly come to accept the inevitability and even the necessity (in some contexts) of an advantage that is temporary by desing. According to the article by D'Aveni et al (2011) "the creation and management of temporary competitive advantages has
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