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?
This audio is now available as a part of a complete online strategy program called Becoming a Strategist. You can listen to it in the course here