Sustainable Competitive Advantage Essay Example for Free

Sustainable Competitive Advantage EssayA sustainable war-ridden advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes chiffonier include ingress to natural resources or access to highly trained and skilled personnel human resources. It is an advantage (over the competition), and must overhear some life the competition must not be able to do it slump away, or it is not sustainable. It is an advantage that is not easily copied and, thus, can be maintained over a long period of time. Competitive advantage is a key determinant of superior performance, and ensures survival and freehanded placing in the market. Superior performance is the ultimate, desired goal of a star sign competitive advantage becomes the foundation. It gives tights the capability to stay ahead of present or potential competition and ensure market leadership. Resource-Based View of the firm.In 19 91, Jay Barney established four criteria that determine a firms competitive capabilities in the marketplace. These four criteria for judging a firms resources are1. Are they valuable? (Do they enable a firm to devise strategies that improve efficiency or force?) 2. Are they rare? (If many opposite firms possess it, then it is not rare.) 3. Are they imperfectly imitable (beca put on of unequaled historical conditions, causally ambiguous, and/or are socially complex)? 4. Are they non-substitutable? (If a ready substitute can be found, then this condition is not met?) When all four of these criteria are met, then a firm can be said to flip a sustainable competitive advantage. In other words, the firm testament have an advantage in the marketplace which will last until the criteria are no hourlong met completely. As a result, the firm will be able to earn higher profits than other firms with which it competes. Developing Sustainable Competitive Advantages1. Customer Loyalty Custo mers must be committed to buying ware and services from a particular retailer. This can be accomplished through retail branding, positioning, and loyalty programs. A loyalty program is like a Target card. Now, when the customer uses the card as a character card, Target can track all of their transactions and store it in their data warehouse, which keeps track of the customers needs and wants outside of Target. This will entice Target to offer products that they do not have in stock. Target tracks all sales done on their cards. So, Target can track customers who use their card at other retailers and compete by providing that swop as well.2. Location Location is a critical factor in a consumers selection of a store. Starbucks coffee (shown here Figure 1) is an example. They will conquer one area of a city at a time and then strain in the region. They open stores close to one another to let the storefront promote the company they do little media advertising due to their location s trategy. 3. Distribution and Information Systems Walmart has killed this part of the retailing strategy. Retailers try to have the most effective and efficient way to get their products at a cheap price and give away them for a reasonable price. Distributing is extremely expensive and timely.4. Unique Merchandise Private label brands are products actual and marketed by a retailer and available only from the retailer. For example, if you want Craftsman tools, you must go to Sears to procure them. 5. Vendor Relations Developing strong relations with vendors may gain exclusive rights to sell merchandise to a specific region and receive popular merchandise in short supply. 6. Customer gain This takes time to establish but once its established, it will be hard for a competitor to a develop a comparable character. 7. Multiple Source Advantage Having an advantage over multiple sources is important. For example, McDonalds is cognise for fast, clean, and hot food. They have cheap meals , nice facilities, and good customer service with a strong reputation for always providing fast, hot food