What do you think are the sources of sustained superior profitability?. Management

The sustained superior profitability can be achieved through efficient and effective use of the capital invested in a company. Simply put, the sustained superior profitability is when the company keeps increasing profits as a result of decreasing expenses or increasing revenue, or both. This can be achieved by encouraging creativity and innovation, investments into Research & Development, low operating costs, high-volume production, strong market research and marketing strategies, superior products/services offered and many others.

Strategic planning process definitely facilitates an achievement of the sustained super profitability. However, the managers should also be able to recognize and acknowledge the emergent strategies caused by unforeseen circumstance, serendipity or autonomous actions of business/functional managers in order to sustain the superior profitability over time.