What is the Difference Between Competitive Advantage and Sustainable Competitive Advantage?

December 21, 2023

written by Sana Sehar

Key Difference

The key difference between competitive advantage and sustainable competitive advantage lies in their duration and stability. Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. Sustainable competitive advantage means maintaining this edge over competitors for a long period, through aspects that are difficult to replicate or substitute.

Comparative Analysis

1. Duration:
   • Competitive Advantage: Temporary, can change with market conditions.
   • Sustainable Competitive Advantage: Long-term, enduring.
2. Foundation:
   • Competitive Advantage: Based on current capabilities and resources.
   • Sustainable Competitive Advantage: Rooted in unique resources or capabilities that are continuously developed.

Table Summary of Competitive Advantage and Sustainable Competitive Advantage

Understanding the distinction between competitive advantage and sustainable competitive advantage is crucial for strategic planning in businesses, emphasizing the need for long-term, unique strategies for lasting success.