Question

Sustainable competitive advantage exists when a firm ______.

1) maintains superior performance relative to its industry over a long period of time
2) is self-regulated and self-motivated
3) formulates and implements strategy
4) starts up and competes for existing market share in the industry

Answer 1

Sustainable competitive advantage exists when a firm maintains superior performance relative to its industry over a long period of time. This allows the firm to earn above-normal profits and stay ahead of competitors.

Step-by-step explanation:

Sustainable competitive advantage exists when a firm maintains superior performance relative to its industry over a long period of time. This means that the firm consistently outperforms its competitors in terms of profitability, market share, customer satisfaction, or other key metrics. For example, Apple has a sustainable competitive advantage in the smartphone industry due to its strong brand reputation, innovative products, and loyal customer base.

Having a sustainable competitive advantage is important because it allows a firm to earn above-normal profits and stay ahead of its competitors. It also provides a barrier to entry for new firms trying to enter the market. However, it is important for a firm to continuously adapt and innovate in order to maintain its competitive advantage, as the business environment is constantly changing.