Factors That Contribute Towards Competitive Advantage: A Conceptual Analysis

The concept of competitive advantage has received considerable interest from researchers. Firms need to manage the factors that contribute towards competitive advantage to ensure their survival. This paper focuses on the factors that contribute towards competitive advantage. Through the analysis of existing literature and the practices adopted by industry-leading firms, several propositions have been made. The paper highlights the importance of factors related to the choices of businesses, diversifications, deployment of resources, the value chain and culture, and the importance of strategic renewal and change initiatives. The practices adopted by leading firms for managing the factors that drive competitive advantage have been referred to provide the necessary evidence in support of the propositions.