Sustainable Competetive Advantage

Also called an Unfair advantage.

• Based on delivering superior value
• A consistent difference in product attributes that is a direct consequence of a capability gap
• The product attribute differences must be the key buying criteria

Conditions for a sustainable competitive advantage

• When does a producer have a sustainable competitive advantage
• How can a strategist test whether an advantage is sustainable?

Implications for strategy:

• Does a sustainable competitive advantage guarantee success?
• Can a producer succeed without a sustainable competitive advantage?
• Should a producer always pursue an sustainable competitive advantage?

A competitive advantage is meaningful only when:

• Customers perceive a consistent difference in important attributes between the producers product or service and its competitors
• That difference is the direct consequence of a capability gap between the producer and its competitors