Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?
A) Newon Inc. generated a revenue of $300,000 this financial year, which is close to the industrial revenue average of $320,000.
B) SM Inc. almost doubled its sales to 8500 units this year compared to its previous year's sales of 5000 units, though the industry average is 10,000 units.
C) TrueLink Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years.
D) Max Electrova Inc. was able to outperform its competitors with its new production system, in terms of revenue, for a brief period of four months.

Question

Quizplus · Accepted Answer

A firm that is able to outperform its competitors or the industry average over a prolonged period of time has a sustainable competitive advantage. Thus, TrueLink Corp. has a sustainable competitive advantage because it has been able to hold its market share of 68 percent in the social networking industry for more than three years.

Which of the Following Scenarios Illustrates a Firm That Has