Due to its unique distribution system where 98% of replacement parts can be available to customers through its dealer network, Caterpillar has a advantage over Komatsu, one of its main competitors.

Sustainable competitive advantage

Explanation:

In an economy where firms compete to gain market share, the ability of a firm to leverage on a unique capability and successfully gain more market share from other firms is called competitive advantage.

This can be in terms of quality, price, ease of delivery, and so on.

A competitive advantage is said to be sustainable when it enables a company to be more successful than its competitors over a long period of time.

In this scenario unique distribution system where 98% of replacement parts can be available to customers through its dealer network of Caterpillar is a sustainable competitive advantage that makes it more successful than Komatsu over a long period

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