The aim of this study was to determine and analysis implementation of knowledge management and knowledge based-strategy to create sustainable competitive advantages as well as strategies to overcome the obstacles in their applicapility. In this research used mixed methode squential/gradual (squential mixed methods) mainly exploratory squential method. At the step collecting and analyzing qualitatif data to answer the problem formulation. To complete qualitatif data used in the second step of quantitatif data. The knowledge management and knowledge based-strategy has been implemented in YPUI Parung Vocational School. Based on the diagnostic result knowledge management implementation perception in YPUI Vocational School was measured using seven (7) dimention, the are knowledge creation, knowledge storage, knowledge sharing, knowledge update, leadership, technology dan culture show good results. While the knowledge based-strategy implementation also good results. The combination of the knowledge, capabilities and resource that are combined with a business strategy that is owned generating performance YPUI Parung Vocational School better than its competitors even able to create a sustainable competitive advantage. A model of sustainable competitive advantages YPUI Parung Vocational School as the outcome of this research.