What Is Sustainable Competitive Advantage?

Barney, J., 1991. Firm Resources and Sustainable Competitive Advantage. Journal of Management, 17 (1), 99-120.

More so than ever in an age of rapidly evolving technologies and global expansion, sustainable competitive advantage depends foremost on a clear sense of organizational purpose (mission) and a compelling vision for success (Campbell & Alexander, 1997). Together, these two key elements define the guiding framework for the insightful creation of value (Campbell & Alexander, 1997) that differentiates an organization from its competitors (Porter, 1996). Thus, knowledge of the critical elements that comprise meaningful mission and vision statements (Aguinis, 2009) becomes essential for achieving sustainable competitive advantage. As testimony, this paper assesses the strategic guidance provided by the mission and vision statements of the

A company or an organization can create competitive advantage only when it is able to distinguish itself from the rivals by implementing value creating strategy over a longer period of time. It is said to have sustainable competitive advantage when other rival firms are unable to duplicate the value creating strategy of firm which has led to achievement of

Although participation in such activities may add value, they may not be a source of competitive advantage. Ultimately, the value, rarity, inimitability, and/or organization (VRIO) of an activity or resource determine its sustainability as a source of competitive advantage. Within this context, we can identify a firm’s strengths, weaknesses, opportunities, and threats (SWOT).

He suggested that sustained competitive advantage derives from the resources and capabilities a firm controls that are valuable, rare, imperfectly imitable, and not substitutable. He further added that the resources and capabilities can be viewed in form of tangible and intangible assets. There are four different categories of resources financial, physical, human, and organization.

A sustainable competitive advantage (SCA) is a single element or multiple elements of a business’s strategy that provide a sustainable advantage over both existing and future competition. According to David Aaker, during a recent study, the average number of SCAs per business was 4.58. This suggests that it is not sufficient to base a business strategy on a single SCA. With that in mind and after further research it is clear that Luxottica holds true to the average. The SCAs that were most identifiable are Market Share, Vertical Integration, Brand Name Recognition, Low-cost Production, Continuing Customer innovation, Product-Line Breadth, and Good Distributor Relations.

In this discussion be careful to explain what you mean with “sustainable competitive advantage” and how it relates to Barney (1991) and Porter (1996). Thus you should either defend or critique the views on competitive advantage offered by Porter and/or Barney in relation to the Aldi case.

For a business to be successful and have a competitive advantage, it is important to evaluate the company’s resources and capabilities (Pitt & Koufopoulos, 2012). Resources in a company are the productive assets owned (tangible or intangible) whereas capabilities are what the company can do with this (Grant, 2010). “Establishing competitive

VRIN framework is the four criteria of sustainable competitive advantage. To identify a company’s competitive advantage, they must consider if their capabilities are valuable, rare, costly to imitate and nonsubstitutable.

Volkswagen goal is to become the ecological and economical leader in the automotive industry and to be the world’s leading automaker by 2018. Volkswagen has four main objectives through which they will achieve their goals.

1. What is competitive advantage, and how does it relate to a company’s business model?

The article “Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility” by Michael E. Porter and Mark E. Kramer advocates that there is a link between corporate social responsibility (CSR) and competitive advantage, and there is an opportunity for innovation that benefits both the company and society that can result in a win-win positive sum game. Ultimately if your firm does not integrate a CSR program into your business core your competitors will.

Competitive advantage is explained by Mahoney and Pandian (1992) as the function of industry analysis, organizational governance and the firm’s effects in the form of resource advantages and strategies. In order for a firm to be competitive it must adapt to the volatile business environment and through strategic management decisions establish a competitive advantage that will ultimately produce superior performance relative to its competitors (Akimova 2000).

A company achieves sustainable competitive advantage when an attractive number of buyers prefer its products or services over the offerings of competitors and when the basis for this preference is durable.

Companies live and breathe innovation; or, at the terribly least, notice it basic to their success. Such companies are those that others ought to emulate for they recognize that to do business, as Peter Drucker prompt in an exceedingly recent Harvard Business review article, “Every firm—not simply businesses—needs one core competence: innovation.”