What kind of competitive advantage is difficult for other companies to duplicate?

Prepare for the Management and Organization Module 6 (06-MGMT-ORG) – Strategy Exam. Engage with flashcards, multiple choice questions, hints, and explanations. Excel in your exam!

Sustainable competitive advantage refers to a unique position that a company maintains over time, which allows it to outperform its competitors consistently. This type of advantage is characterized by its ability to remain robust despite the competitive actions of rivals, making it particularly challenging for other companies to replicate.

Factors contributing to a sustainable competitive advantage often include proprietary technologies, strong brand reputation, unique resources, or differentiated customer service. These aspects create barriers to entry for competitors and allow the company to maintain its market position. As competitors try to emulate these advantages, they may face obstacles due to the time, cost, or complexity involved in doing so, which ensures that the original firm can continue to enjoy its competitive edge.

In contrast, comparative advantage focuses on the efficiency of production or resource allocation between companies or countries and may not be inherently difficult to replicate. Revealed competitive advantage is more about outcomes in trade or performance rather than a sustained position, while core competency advantage emphasizes the capabilities that allow a firm to differentiate itself. However, those competencies can often be copied or adopted by other firms over time.

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