Final answer:
Sustainable competitive advantage is when an organization excels in areas like human capital, technology, physical equipment, and economic climate, which enables enduring performance above competitors.
Step-by-step explanation:
Sustainable competitive advantage is achieved when an organization excels in several key areas that allow it to outperform its competitors consistently over time. In particular, staying ahead in human capital, in technology, having an advanced physical plant and equipment, and creating a stable and market-oriented economic climate play significant roles in establishing a long-term advantage. By investing in these areas, companies can innovate; for example, by developing new technologies that can be reused multiple times, thus affording an advantage both at the time of development and into the future. Moreover, companies can enhance their profits by producing more cost-efficient products or creating products with desired consumer characteristics, as well as by focusing on reducing environmental impacts and establishing effective programs for sustainability.
Organizations also seek opportunities and advantages by leveraging resources like a skilled labor pool or having access to valuable natural resources or strategic locations. Decision making, specialized knowledge in areas like math, science, and technology, and creativity are essential for maintaining a sustainable competitive advantage. Ultimately, the pressure to innovate and develop sustainably is growing as the exploitation of resources poses a challenge to economic development.