Accumulating Competitive Advantage and Strategic Investment

Competitive advantage discussed upon the theoretical background of business strategy is divided into practice-oriented approach (Porter [1]) and resource based view (Teece, et al. [2]). Practice-oriented competitive advantage is mainly supported by tangible assets, while resource-based competitive advantage is mainly supported by intangible assets. Among the orthodox theoretical system of competitive advantage, tangible assets can be exchanged by currency, while intangible assets cannot be exchanged through intermediate markets. At the same time, tangible assets has indispensability which means they are necessary to almost all business activities.