Final answer:
A software company needs to invest in R&D, consider environmental sustainability, and form strategic alliances to maintain a sustained competitive advantage. The rapid pace of technological change and market competition necessitates continuous innovation and adaptation.
Step-by-step explanation:
To generate a sustained competitive advantage, a software company must properly align its strategies with the constant changes and challenges of its business environment. Investing in research and development (R&D) is crucial to innovate and stay ahead of the competition. This aligns with the insights of Gregory Lee, CEO of Samsung, who emphasized the importance of relentless pursuit of innovation. By doing so, companies can produce products more cheaply or with desirable characteristics that cater to consumer demand, therefore temporarily achieving above-normal profits.
Environmental changes and sustainability are also significant factors. A software company must balance between economic development and protection of the environment, as technology and sustainable development become increasingly interconnected. The adoption of greener, efficient, and safe products can reduce environmental impacts and is a part of a comprehensive strategy for sustainable competitive advantage.
Lastly, forming strategic alliances can be beneficial by pooling resources, knowledge, and capabilities to innovate and create value that cannot be generated independently. Companies like Amazon and Samsung are noted for their effective programs that encapsulate these strategies. However, it's important not to ignore the role of market competition as it often drives firms towards innovation and cost efficiency to maintain their competitive edge.