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Competitive Advantage

Competitive Advantage

Competitive Advantage

To gain and sustain competitive advantage, an organization must formulate strategies that capitalize on internal strengths and continually improve internal weaknesses (David, David, David 2019). In creating production models that reduce reliance on raw materials, companies are doing just that, gaining a competitive advantage. This process is known as the Circular Economy. A circular economy is a systemic approach to economic development designed to eliminate waste by continually using products and materials and regenerating natural resources (“What is a Circular Economy? | Ellen MacArthur Foundation”, 2020).

For many businesses, the primary means for gaining and sustaining competitive advantages are shifting downstream. Downstream activities are related to consumer behavior. These activities aim to reduce customers’ costs and risks (Dawar, 2020). The circular economy, reusing waste to become profitable within the business ultimately, will further increase its competitive advantage.


Dawar, N. (2020). When Marketing Is Strategy. Retrieved 31 May 2020, from

David, F. R., David, F. R., & David, M. E. (2020). Strategic Management: Concepts and Cases, A Competitive Advantage Approach (17th ed.). Boston, MA: Pearson Education, Inc.

What is a Circular Economy? | Ellen MacArthur Foundation. (2020). Retrieved 29 May 2020, from


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Competitive Advantage

Competitive Advantage

The primary means for gaining and sustaining competitive advantages for companies are shifting downstream. Is that also the case in a circular economy? Explain and discuss these statements.

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