Provide your feedback to the discussion responses below. Min 200 word min
A. Sustainable competitive advantage are "Capabilities that are valuable, rare, costly to imitate, and nonsubstitutable are core competencies (Hill, Ireland, Hoskisson, 2011 page 86)". There are four criteria of sustainable competitive advantage and they are valuable capabilities, rare capabilities, costly-to-imitate capabilities and nonsubstitutable capabilities. Valuable capabilities are those that help a company in its external environment. They allow a company to create a product/service that the consumers want and that will limit threats from other companies. Rare capabilities are capabilities that very few competitors have, they make a company unique in what they have to offer. Costly-to-imitate capabilities are exactly what they sound like, they cost a lot for competitors to copy, thus making them a valuable product/service for a company. Nonsubstitutable capacities are products/services that other companies cannot duplicate (Hill, Ireland, Hoskisson, 2011). In my opinion, this is the best competitive advantage a company can have, making a product/service that cannot be copied fully is valuable when that product/service is in demand. The reason that sustainable competitive advantages are so critical to companies, is because if done right, they can change the dynamic of a company. Products such as the Blooming Onion from Outback Steakhouse, the Whopper from Burger King and the Slurpee from 7-eleven are all examples of successful sustainable competitive advantages, they all have products that have set themselves apart from other companies and have also made them more popular because of them.
B. When looking at the four criteria of a sustainable competitive advantage you will see why it is considered critical in a company's strategy-making considerations. First look at Valuable Capabilities. This is when a company is able to exploit the threats or opportunities from external sources. This is important when you are going head to head with another company and you see what they have as opposed to you. Next there is Rare Capabilities. This is when other companies might use an opportunity that you can get involved with an promote your company that much more. Third is Costly to Imitate Capabilities. This is when some companies may look at an opportunity as too expensive but you have the means to develop it. Finally you have Non Substitutable Capabilities. This is when a company has something that no one else has the means or strategic ways of doing it. This is why sustainable competitive advantage are critical to the strategy-making process.