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1.0 Introduction Some firms are more profitable than others, regardless of whether the average profitability of the industry is high or low. The superior performers conceivably possess something special and hard to imitate that allows them to outperform their rivals. These unique skills and assets are referred to as sources of competitive advantage (Bharadwaj, Varadarajan & Fahy, 1993). In the mid-1990s, a new theory of competition, labelled ¡§resource- advantage theory of competition,¡¨ was proposed in the marketing literature (Hunt & Arnett. 2003). The new theory claims to offer a better explanation and predict key micro and macro marketing phenomena and therefore claim to replace the Neoclassical Theory of Perfect Competition (Deligonul & Cavusgil, 1997). However, Deligonul and Cavusgil (1997) argues that any successful challenger to any theory must come from a new paradigm, but both the neoclassical perfect competition and R-A theory come from the same paradigm, therefore, the replacement thesis is unconvincing. This paper seeks to examine the body of literature on comparative advantage theory of competition (also known as the resource-advantage theory of competition) and sustained competitive advantage in orde