Generally, to build a sustainable competitive advantage, companies should:

• A. Develop unique resources or capabilities that are difficult for competitors to imitate.
• B. Copy the strategies of market leaders.
• C. Rely on short-term promotional strategies.
• D. Focus solely on reducing prices below all competitors.

Answer: (A)

Verified step by step guidance

1. Understand the concept of sustainable competitive advantage: it refers to a company's ability to maintain an edge over competitors in the long run by having unique strengths that are not easily replicated.
2. Recognize that copying strategies of market leaders or relying on short-term promotions are typically not sustainable because competitors can quickly imitate these tactics.
3. Note that focusing solely on reducing prices can lead to price wars, which are often unsustainable and can erode profits.
4. Identify that developing unique resources or capabilities—such as proprietary technology, strong brand reputation, or specialized expertise—that are difficult for competitors to imitate is the key to building a sustainable competitive advantage.
5. Conclude that the best strategy is to invest in and cultivate these unique resources or capabilities to maintain a long-term competitive edge.