Strategic management has emerged as a critical discipline for organizations seeking to achieve and sustain competitive advantage in increasingly dynamic and complex global markets. This paper provides a comprehensive review of theoretical foundations, strategic tools, and emerging drivers that enable firms to attain sustainable competitive advantage (SCA). Classical frameworks such as Porter’s positioning strategies and generic strategies are discussed alongside contemporary perspectives, including the resource-based view (RBV) and dynamic capabilities, which emphasize the unique resources of firms and their capacity to adapt and reconfigure in response to environmental turbulence (Barney, 2022; Helfat et al., 2022). Furthermore, this paper examines the strategic importance of digital transformation and Environmental, Social, and Governance (ESG) practices as enablers of SCA (SAGE Journals, 2024; Ideas/RePEc, 2022). Digital capabilities, including data analytics, artificial intelligence, and platform ecosystems, enhance the firm’s ability to sense opportunities, respond to threats, and improve operational efficiency (Redwerk, 2024; Deloitte, 2024). ESG-oriented strategies enhance legitimacy, stakeholder trust, and reputation, serving as inimitable resources increasingly valued by investors, regulators, and consumers (Mailani et al., 2024). Additionally, this paper explores strategic tools such as SWOT, PESTEL, value chain analysis, and the Balanced Scorecard as mechanisms for integrating internal resources with external environmental demands (ResearchSynergyPress, 2023). Organizational ambidexterity, which balances exploration and exploitation, is discussed as a critical factor for sustaining long-term advantage (JOTMI, 2024). Overall, the integration of RBV, dynamic capabilities, digital transformation, ESG practices, and strategic management tools enables firms to achieve enduring competitive advantage in the twenty-first century.