Sustainability of a Competitive Advantage
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In Marketing Strategy and Organization: Building Sustainable Business the sustainability of a Competitive advantage is defined along the following axes:
- Value~@Customer
- Durable Demand, from a marketing perspective a demand exists whereever a customer is willing and able to pay a price for you product or service.
- Resource Superiority, for a competitive advantage to be sustainable it must be based on some superior configuration of resources. The business model must enable the company to offer products or services attractively better or attractively different from the competition.
- Barriers~@Entry
- Imitatability; it becomes more difficult for the competitor to imitate when resources are
- Unique,
- Highly interconnected, the longer and more complex a chain of business processes is, the harder it is to transfer it into a capability.
- Efficiencies of scale and scope,
- History of the company, a strong brand isn't build overnight
- Causal ambiguity, it may be difficult from the outside to pinpoint exactly which configuration of resources or which elements of the offering are contributing to the success of a company.
- See also: Protect against imitation
- Non-substitutability
- Disruptive Innovations hold the power to create new substitutes.
- Imitatability; it becomes more difficult for the competitor to imitate when resources are
- Value~@Company
- Appropriability
- Operational Efficiency is about doings right, minimizing the resources input requirements for a given output.
See also Sustainable Competitive Advantage
