ACCA Strategic Business Leader (SBL) Practice Exam

Which capability is NOT required to sustain competitive advantage?

1. Inimitability

2. Durability

3. Popularity

4. Relevance

The correct answer is: Popularity

The capability that is not required to sustain a competitive advantage is popularity. While having a popular product or service can be beneficial and may contribute to a competitive edge in the short term, popularity alone does not guarantee that a company can maintain that advantage over time. Sustaining competitive advantage typically relies on several other factors. Inimitability refers to the idea that a company's advantages cannot easily be replicated by competitors, ensuring that any unique strengths cannot be copied quickly. Durability is crucial as it concerns the lifespan of the advantage; it should remain effective and relevant in the market for a significant period. Lastly, relevance emphasizes the importance of a company's offerings meeting the current needs and preferences of consumers, which is essential for staying competitive. Overall, while popularity may attract customers temporarily, it does not inherently provide the structural and strategic elements necessary for long-term competitive advantage like inimitability, durability, or relevance do.