Do you know why some businesses survive for a long time whereas others die quickly? When a company lacks a sustained competitive advantage, it finds sit hard to survive or make money over the long term. Thus, a sustained advantage is the life force of business.
The Single Biggest Goal of the Strategist
Since competitive advantage is so critical for business, it is the single biggest goal of a strategist. In this episode, I discuss what is a competitive advantage and how does it arise?
Three Sources of Competitive Advantage
There are three sources of competitive advantage for a firm: resources, capabilities and activity systems. I discuss these three in this episode and also provide examples of how the same. But a fundamental question arises as to why some resources, capabilities and activity systems provide an advantage to the firm but others do not. The answer depends on four conditions which I detail in this episode.
The core takes ways from this week’s episode are as follows:
- Why does your firm need to build a sustained competitive advantage?
- What is the benefit of competitive advantage and what happens if you cannot create it?
- How competitive advantage arises from resources, capabilities and activity systems of firms.
- What are the four conditions that drive a sustained competitive advantage?
How to Listen?
You can listen to it right here by pressing the play button. You can also download the episode to your phone and listen to it using an app like Downcast. It is also available on iTunes, Google Play Podcast, and Stitcher Radio.