In order for a company to achieve a sustainable competitive advantage, it must:

a. perform one or more activities in the value chain at the same quality level as its competitors.

b. perform at lower quality and higher cost than competitors.

c. perform all activities in the value chain at the same quality level as its competitors.

d. two of the answers are correct. perform its value chain activities at a higher quality level than one of its competitors.

Answer: a. perform one or more activities in the value chain at the same quality level as its competitors.

Note: But it must be at a lower cost than the competitors.

d. perform its value chain activities at a higher quality level than one of its competitors.

Note: It must be at no greater cost than the competitors.

What is Sustainable Competitive Advantage?

They are a company's abilities, culture, assets, and attributes that places them at an advantage or gives them a cutting edge over their competitors, such advantage (s) are difficult to duplicate by another company.

Types of sustainable competitive advantage.

• Low pricing: This is the ability of a company to provide goods or services at a low cost compared to their competitors, this ability could be an important competitive advantage.

• Market Power: This talks about the sole ability of a company to increase price without experiencing a loss in the market share, this happens when there is high barrier to entry in a market.

Other examples are; powerful brands, outstanding management, product differentiation, etc.