Competitiveadvantages are transient because organizations/businesses are highlyinnovative. In this regard, an innovation that seems revolutionarytoday may become obsolete within a short time. The current rate ofinformation sharing as well as research creates an enablingenvironment for speedy product and process innovations, thereforedepleting any pre-existing competitive advantages (Mnjala, 2014). Itis therefore very uncertain to determine the duration that acompetitive advantage will last.
Thebiggest challenge in maintaining a competitive advantage is thepossibility of copying a particular product or process. Competitorscan easily improvise their products and processes to kill thecompetitive advantage of a market player (Mnjala, 2014). For example,a new product can only sustain an organization’s competitiveadvantage until a competitor launches a rival product. Either acompetitor can come up with an improved product or a similar productat a lower cost, therefore, killing the competitive advantage.
Organizationsmay have competing strategic priorities, hence making it difficult tomaintain a competitive advantage. They may adopt growth strategiesthat do not consider their impact on the sustainability of acompetitive advantage (Sirmon, 2011). Moreover, organizationsexperience challenges in retaining talent. Talented individuals helporganizations to create a competitive edge. Poaching talentedindividuals may lead to the transfer of insider information as wellas the eradication of operational efficiency (Mnjala, 2014).
Itis important for organizations to curtail the transient nature ofcompetitive advantages. Developing a competitive advantage can be avery tasking and expensive process (McGrath, 2013). Therefore,organizations need to ensure that they maximize the benefits ofcostly research in product development and improvements in processes.Hence, they should curtail this transient nature by putting in placeproper plans before launching a product or altering processes tocater for any unexpected market events that may curtail theircompetitive advantage.
McGrath,R. G. (2013). Theend of competitive advantage: How to keep your strategy moving asfast as your business.Harvard Business Review Press.
Mnjala,D. M. (2014). The Challenges of Creating Sustainable CompetitiveAdvantage in the Banking Industry in Kenya. IOSRJournal of Business and Management, 16(4),82-87.
Sirmon,D. G., Hitt, M. A., Arregle, J. L., & Campbell, J. T. (2011). Thedynamic interplay of capability strengths and weaknesses:investigating the bases of temporary competitive advantage. StrategicManagement Journal, 31(13),1386-1409.