Competitive Advantage Video
Sustainable Competitive Advantage Definition, Factors, and How to Create One
A competitive advantage is the thing that differentiates a business from its competitors. It is what separates you from everyone else. And, it’s usually the reason you are in business. It answers the question “Why should I buy from you?” or “How are you better than my current supplier?”
A firm possesses a sustainable competitive advantage when it has value-creating products, processes and services for their customers that cannot be duplicated or imitated by its competitors.
Having a competitive advantage, even a sustainable one, does not necessarily mean that you or your customers are aware of it. So there is a need to create an offer or positioning in the market that clearly states your competitive advantage. We call this a unrefuseable market offer or a “Mafia Offer”. As you probably know, a mafia offer is an offer so good that 1) your customers can’t refuse it and 2) that your competition can’t or won’t match.
Listen to this example of a true sustainable competitive advantage , a Mafia Offer. This video also covers Creating a Mafia Offer:
If you want to read more on the subject of the traditional Competitive Advantage, start with these 3 books (I like the first one best), but watch the Mafia Offer video first:
- Creating Competitive Advantage by Jaynie L. Smith
- Gaining and Sustaining Competitive Advantage by Jay B. Barney
- Competitive Advantage: Creating and Sustaining Superior Performance by Michael E. Porter