What Is Sustainable Competitive Advantage?

2359 WordsApr 4, 201610 Pages
What is Sustainable Competitive advantage? Sustainable competitive advantage (SCA) is the remarkable position that a company or organization builds in order have an upper hand over its competitors that helps the business outperform from the rest consistently. “Sustainable Competitive Advantage is the unique position that an organization develops in relation to competitors that allows it to outperform them consistently” (Hofer and Schendel, 1978). SCA is basically the value creating process and position that cannot be copied by other companies that puts the company to an advantage leading to the production of above normal rents. There is a vast difference between Sustainable Competitive Advantage and Competitive advantage. SCA is long lasting and cannot be imitated. Therefore it can be called a sustainable competitive advantage if it can and must be maintained for a significant amount of time (www.wikipedia.org). Any company or firm needs to have a sustainable competitive advantage if they need to survive in the market for a long period of time. This helps the company to improve its competitive position in the market. The company may distinguish themselves as a sustainable competitive market on the basis of four specific criteria which will be discussed below in detail. In 1991, Jay Barney established the four specific criteria that can be used to decide which of the firm’s capabilities have the potential to create a sustainable competitive advantage. These four criteria
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