ABSTRACT
This chapter deals with the identification, quantification and assessment of factors that can give rise to a competitive advantage and hence above-average profits. It focuses on key purchase criteria in shows one way of assessing relative strength, but it is not always about data. High scores imply an ability to deal with potential threats or capitalize on potential opportunities. The speed with which competitive advantage is undermined by competitors depends on the ability of competitors to challenge either by imitation, innovation or by positioning. The chapter presents the assertion that a firm's ability to compete is more important to profitability than industry structure. In practice, distinguishing the profits associated with industry attractiveness from those associated with owning superior resources and capabilities is difficult. The main interest is in identifying those resources and capabilities that give sustainable competitive advantage.
