A Strategy for Business Differentiation and Competitive Advantage Through Sustainable Development

Sustainability and Sustainable Development (SD) are increasingly becoming a big driver in the business world today, not least of all in the construction industry. Construction firms are increasingly under pressure from both their private and public sector clients to design and construct buildings that incorporate SD principles and for the firms themselves to be sustainable businesses. The strategic implications are that businesses in the industry have found the need to re-look at their strategies in relation to Sustainability and SD in order to meet the demands of their clients. However, such measures come at a price both in terms of time and money. As with any business, therefore, the questions that arise include: 'what strategic benefits are there for construction firms that formulate and implement a sustainability strategy?' 'Can such firms differentiate themselves from competitors and therefore attain competitive advantage?' The purpose of this paper was to examine whether or not business differentiation and therefore competitive advantage can be attained by construction firms through the adaption of sustainability strategies. The findings of this paper were attained through an action research method whereby the author was an active research participant in the process under study. Data was collected via literature review, interviews with senior management, company presentations/information and the use of a case study. The findings of the paper were that SD is a viable strategy for achieving business differentiation and competitive advantage. The key to a viable strategy is being the first to market with approaches and solutions that give best value for money with acceptable performance and payback periods. Furthermore, competitive advantage lies in the ability of a business to develop core competencies that are knowledge-based in this area. This will enable the business to continue to stay ahead of competitors.