The purpose of this study is to analyze the concept of competitive advantage and its importance in the modern business environment. The focus is on the role of digital transformation in enhancing this advantage. The theoretical foundations of competitive advantage are explored, including strategies for achieving competitive advantage, its dimensions and construction principles. In addition, the impact of modern technologies such as artificial intelligence, the Internet of Things and big data analytics on its sustainability is discussed. The study adopts an exploratory analytical approach, based on the analysis of previous literature on the subject and the analysis of the main models and strategies used by companies to achieve sustainable competitive advantage. The study found several findings, the most important of which is that digital transformation has become a key factor in gaining competitive advantage because it helps to improve operational efficiency, improve customer experience and increase innovation. The results also confirm that companies with flexible data-driven strategies are better able to cope with changes in the business environment. The study recommends that companies implement effective digital transformation strategies, invest in modern technologies and promote an innovative culture in the workplace. It also emphasizes the importance of developing employees’ skills and empowering them to use digital tools to fully exploit competitive advantages in the digital age.