A competitive advantage is considered to be a sustained competitive advantage when
A) the firm is able to spread the advantage to all of its business units.
B) it is able to maintain above-average profitability for a number of years
C) the advantage is very large.
D) the advantage was gained at a low cost.
E) the managers who developed the advantage are still employed at the firm.

Question

Quizplus · Accepted Answer

A sustained competitive advantage is one that the firm is able to maintain over a long period of time, typically resulting in above-average profitability for a number of years. This is different from a temporary advantage or a one-time gain, as it requires ongoing efforts to maintain the advantage and prevent competitors from catching up or surpassing the firm. Therefore, option B is the best choice as it indicates the most important attribute of a sustained competitive advantage.

A Competitive Advantage Is Considered to Be a Sustained Competitive