Question

10. Briefly describe what a sustainable competitive advantage is and describe a key piece of information that an entrepreneur should have to develop a sustainable competitive advantage.

Answer 1

Sustainable competitive advantage

Sustainable competitive advantage refers to the distinctive benefit that an organization has over and above the competitors. It allowed a business organization to be more successful than others in the industry in the long run. For instance, human resources are the most valuable assets of the company that helps to establish a sustainable competitive advantage of its product.

A key piece of information that an entrepreneur should have, to develop a sustainable competitive advantage is to understand the market trends and it's conditioning. This information helps in analyzing customer behavior and their preferences for products and services so that they can make plans accordingly. For entrepreneurship, it is important to gather market information to establish a competitive advantage.