Question

Briefly define what is meant by competitive advantage. Are competitive advantage and sustained competitive advantage identical concepts? Compare and contrast the two concepts.

Answer 1

Competitive advantage.

      * It is the ability of an organization to perform much better than

        it's competitors.

Sustained competitive advantage.

      * It is a competitive advantage which last over a period of time and

        difficult to copy or supress by other competitors.

* Both competitive advantage and substained competitive advantages are

   identical concepts which help to the growth and development of an organization.

* If a company or organization can maintain competitive advantage over a period

of time then it is known as a substained competitive advantage.

Compare and contrast between two concepts.

Competitive advantage

Sustained competitive advantage.

It help an organization to make higher profit than others in that same field. Factors which help to develop competitive advantage include,       * High skilled workers.       * Adequate resources.       * Good low cost services.       * Application of new technology         and equipments.

It help the organization to make profit for a long period of time when compared to others in that same field. Factors which help to develop substained competitive advantage include,      * Maintaining public relation through high quality and low cost products.      * Proper use of resources by good planning in the management level.      * Focus on demands of the customers.      * Creating a better working environment inside of an organization to improve productivity and to make good products.