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Sustaining a Competitive Advantage

When is a company's competitive advantage most likely to endure over time? Why?

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A company's competitive advantage must be sustainable, in order to endure over time. Warren Buffett stated, "The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors." This means a company must distinguish themselves and their product or service with a unique competitive feature. An example of this would be Apple with their ...

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This detailed solution discusses examples of when a company's competitive advantage are most likely to endure over time and gives reasons for this ability. References and examples are given.