This research aims to examine the correlation of competitive advantage and internal marketing and marketing capabilities will influence the marketing done by the company. This correlation wants to show the relationship between strategic advantage and competitive advantage, this is an effort in creating competitive in a dynamic competitive market. Marketing capability is innovation in knowledge and working mechanisms at the level of company development, where the development allows the company to improve human resources. While marketing capabilities is a company's ability to face competitors, both on internal and external aspects. Development and strengthening here raises the company's ability to create a stable position of competitors. This study was conducted at Pt Sirtanio Organik Indonesia which is engaged in the processing of organic red rice with medium processing firms mechanism, the company is located in Sumber Baru village, Singojuruh District, Banyuwangi Regency. The theory used is the concept of competitive advantage and internal marketing and marketing capabilities. The research method uses a quantitative approach where this approach quantifies the data usually, so that this method is suitable for a wide population with limited variables, so that the research data is considered representative of the entire population. The method of data analysis in this study using multiple linear regression analysis. Data collection technique is done by observing and distributing research questionnaires to 36 employees of Pt Sirtanio Organik Indonesia as respondents. The results showed that internal marketing and marketing capabilities have a positive and significant effect on competitive advantage of 53.2%. This means that the influence of internal marketing and marketing capabilities on competitive advantage is 53.2%, while the remaining 46.8% is influenced by other factors outside the scope of this study.