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Essay Details

Subject: Business
Author: Sarah P
Date: November 7, 2010
Level: University
Grade: A
Length: 3 / 837
No of views: 0
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Essay text:

These include selling, public relations and communication. (Answers, 2007) Competitive advantage is the position a firm occupies in competitive landscape. Michael Porter posits that competitive advantage, sustainable or not exists when a company makes economic rents or earnings that exceed their costs, including the capital costs...

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This means that the normal competitive pressures are not able to drive down the firm's earnings where they cover all costs and provided just minimum capital invested. Most forms of competitive advantage cannot keep going for the length of time due to the promise of economic rents; this drives the competitors to duplicate the advantage held by one firm...

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