This study is an attempt to identify and investigate the relationship between various strategic marketing subjects like (market orientation, innovation orientation and marketing capabilities) and competitive advantage. Further, the research raised the question, what are the significances of strategic marketing efforts to firm’s competitive advantage?, Marketing managers, Supervisors, sales managers and distribution managers of brewery firms were the main target respondents of the study, a total of 165 questionnaires were distributed in person and through mail to respondents found in 11 different breweries in Ethiopia and 106 fully completed questionnaires were received back. Pearson’s product moment correlation coefficient and multiple regression analysis were employed. The results indicate the existence of significant relationship between competitive advantage and strategic marketing in the study area.