Question 12

The competitive advantage of any business in only momentary and therefore temporary, and hence, cannot last forever. Since competition is the act of striving against another force for the sole purpose of achieving dominance or a reward, the term competition to an entrepreneur should be taken broadly to include alternative ways that people might solve the problem one is addressing. In doing so, a business would achieve sustainable competitive advantage if it constantly develops value-creating processes that cannot be easily replicated by its competitors; hence positioning itself in a unique position that allows it to outperform them consistently. Further, based on unique competencies, a firm’s sustainable competitive advantage can be built over a period of time. However, complacency at strategic level would equate to certain death of the business’s life cycle.