In this paper an approach for analyzing the sustainability of competitive advantage for small businesses that emphasizes competitive factors are developed. We investigate the added-value approach to business strategy by introducing strategy develoment evolution of how companies create value for growth. This allows us to identify important factors for performance improvements, using resource for improving strategy level and efficiency. Competition and strategy are analyzed as a new system to be integrated in order to implement crucial issues needed for strategic management to help small and medium organization to create and sustain competitive advantages. It has to include long-term objectives, which are responding to client requirements comparing to competitors, ability to innovate products, quality, and efficiency. Traditional cost leadership strategies should be analyzed as minor strategy element from strategic management for achieving sustainable development. Using this approach, we focus on value creating as primary achievement for traditional development in the strategy literature on competition and strategy development.