The comparative advantage theory is closely related to the capabilities approach by finding its comparative advantage an organization uses the resources which provide the greatest opportunity for achieving a positional advantage (value and/or cost). Sustained positional advantage leads to superior financial performance. An important premise is that the performance incentive will drive the search for comparative advantage from existing resources and the creation of new advantage resources: Competition, then, consists of the constant struggle among firms for a comparative advantage in resources that will yield a marketplace position of competitive advantage and, thereby, superior financial performance. Once a firm's comparative advantage in resources enables it to achieve superior performance through a position of competitive advantage in some market segment or segments, competitors attempt to neutralize and/or leapfrog the advantaged firm through acquisition, imitation, substitution, or major innovation. the comparative advantage theory of competition is therefore inherently dynamic. The comparative advantage view of competition incorporates several importing realities of the marketplace. It helps to explain why some companies display impressive perfor­mance while others are marginal or poor performers. Management is faced with the complex task of targeting the best existing resources and developing the most promising new resources.