Discuss why competitive advantages are not permanently sustainable

Competitive advantage is not a viable stance in an ever-evolving business landscape (Hitt, Ireland, & Hoskisson, 2017). Rivals are using their unique resources and core competencies to compete for the consumers. To that extent, some competitors may be imitating or improving the product designed by a firm. Therefore, a firm must maximize their opportunities by steadily studying their internal environment to seek out opportunities to create competitive advantage.

Since competitive advantage is not sustainable, a firm needs a well-planned strategy that can continue to improve over time. This plan can be done by carefully analyzing the firm’s resources. First, firms should understand the elements that create value. Secondly, the outcomes should be tested against the firm’s capabilities. The capabilities of a firm become a source of core competence when it is valuable, rare, costly to imitate, and non-substitutable (Hitt et al., 2017). By understanding the core competencies, a firm can create a source of competitive advantage.

Another source of understanding competitive advantage is in the text of the Holy scripture. The scripture provides wisdom and guidance to a strategic Christian leader. The scripture affirms that firms can create a competitive advantage through the planning process. It says, “Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it? For if he lays the foundation and is not able to finish it, everyone who sees it will ridicule him, saying, ‘This fellow began to build and was not able to finish’ (Luke 14:28-30, New International Version). Likewise, the scripture from Luke can be viewed as instructions for Christian’s to plan for one’s own spiritual need. God’s word is the foundation or strategic plan, and the competitive advantage is through adherence to His word. Our goal is to build a relationship closer to him by continuously studying and applying His word daily in our lives.

Prompt: Over time rivals use their resources, capabilities, and core resources to form different value-creating propositions. Discuss why competitive advantages are not permanently sustainable. Explain why firms must maximize their current competitive advantage while simultaneously using their resources and capabilities to form new advantages. Include in your respond how Luke 14:28-30 guides us to maximize a competitive advantage by being a follower of Christ.