Sustainable Growth:

Competitive Strategies

Sustainable Competitive Advantage (SCA)

How to survive against your competition over a long period of time

 

Vadim Kotelnikov personal logo Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation unlimited!

 

 

   

 

 

"True progress in any field is a relay race and not a single event." ~ Cavett Roberts

 

 

Five Criteria of Sustainable Competitive Advantage

  1. Unique

  2. Difficult to replicate

  3. Superior to competition

  4. Sustainable

  5. Applicable to multiple situations... More

Three Parts of Competitive Advantage1

  1. Basic Competitive Advantage (BCA) - your entry ticket to the global hypercompetition game; implies a product/service with internationally competitive cost, quality, and after-sale service

  2. Revealed Competitive Advantage (RCA) - reflected by your market share

  3. Sustainable Competitive Advantage (SCA) - allows the maintenance and improvement of the enterprise's competitive position in the market

 

Creating Competitive Disruption

7 Strategies

10 Commandments of Innovation

Inspirational Business Plan

Successful Innovation

  • Market Analysis: "Creativity methods provide senior management with a unique tool to tap into a massive organizational resource. Learning to leverage the creative thinking skills of every individual, regardless of their level, creates the sustainable competitive advantage every corporation is striving for." Jim O'Neal... More

Value Innovation

 

6Ws of Corporate Growth

 

The Art of War: Planning an Attack

Excerpts from the The Art of War, Sun Tzu

  • You must move as quickly as the wind.

  • The value of time, that is of being a little ahead of your opponent, often provides greater advantage than superior numbers or greater resources... More

Make Your Competition Irrelevant

  1. Create differentiation

  2. Focus on the Moment of Truth

  3. Good, Better, and Best... More

Blue Ocean vs. Red Ocean Strategy

 

 Lessons from Jack Welch

3Ss of Winning

  • Speed: If you're not fast you can't win. Speed is everything. It is the indispensable ingredient of competitiveness... More

25 Lessons from Jack Welch

 

The GE Leadership Effectiveness Survey (LES)

  • Understands and uses speed as a competitive advantage... More

Transforming Your Business From Mediocre To Great

Top 7 Principles

  • Always Seek the Edge. In 1954, Roger Bannister did the seemingly "impossible" and ran the first 4 minute mile. When asked how he did it, he said "It's the ability to take more out of yourself than you've got.'" How can you "take more out of yourself than you've got" to achieve the seemingly impossible in your business?... More

Smart Business Architect

 

What is Sustainable Competitive Advantage?

Sustainable competitive advantage is the focal point of your corporate strategy.  It allows the maintenance and improvement of your enterprise's competitive position in the market.

It is an advantage that enables business to survive against its competition over a long period of time.

Todays' Era of Hypercompetition

Hypercompetition is a key feature of the new economy.  New customers want it quicker, cheaper, and they want it their way.

The fundamental quantitative and qualitative shift in competition requires organizational change on an unprecedented scale. Today, your sustainable competitive advantage should be built upon your corporate capabilities and must constantly be reinvented.

Distinctive Capabilities

Distinctive capabilities are the basis of your competitive advantage. According to the new resource-based view of the company, sustainable competitive advantage is achieved by continuously developing existing and creating new resources and capabilities in response to rapidly changing market conditions.

Among these resources and capabilities, in the new economy, knowledge represents the most important value-creating asset.

The opportunity for your company to sustain your competitive advantage is determined by your capabilities of two kinds distinctive capabilities and reproducible capabilities - and their unique combination you create to achieve synergy. Your distinctive capabilities - the characteristics of your company which cannot be replicated by competitors, or can only be replicated with great difficulty - are the basis of your sustainable competitive advantage. Distinctive capabilities can be of many kinds: patents, exclusive licenses, strong brands, effective leadership, teamwork, or tacit knowledge. Reproducible capabilities are those that can be bought or created by your competitors and thus by themselves cannot be a source of competitive advantage... More

Leadership

Leadership is the necessary condition for long-term competitiveness. In particular in the knowledge economy, what is proving to be most effective is "the emerging style of values-based leadership, both as motivation for constant innovation up and down all organization levels and as a source of unity and coherence across fragmented firm boundaries."4 Harnessing your abilities to lead through the power of intellect, will, persistence, and vision creates synergies that propel successful companies in the quest for, and achievement of, competitive advantage... More

Systemic Innovation

Innovation used to be a linear trajectory from new knowledge to new product. Now innovation is neither singular nor linear, but systemic. It arises from complex interactions between many individuals, organizations and environmental factors. Firms which are successful in realizing the full returns from their technologies and innovations are able to match their technological developments with complementary expertise in other areas of their business, such as manufacturing, distribution, human resources, marketing, and customer relationships... More

Radical Innovation

Long-term corporate success linked to the ability to innovate. Although corporate investment in improvements to existing products and processes does bring growth, it is new game changing breakthroughs that will launch company into new markets, enable rapid growth, and create high return on investment.... More

Customers for Life

By: Brian Tracy

The two most important words to keep in mind in developing a successful customer base are Positioning and Differentiation.

Differentiation refers to your ability to separate yourself and your product or service from that of your competitors. And it is the key to building and maintaining a competitive advantage.

This is the advantage that you and your company have over your competitors in the same marketplace the unique and special benefits that no one else can give your customer... More

Corporate Culture as a Fundamental Competitive Advantage

The strength of your organizational culture is one of the most fundamental competitive advantages. If you can build and preserve an innovation-adept culture, a culture of commitment, one where employees passionately pursue your organization's cause and mission, you will be better positioned for success... More

Leveraging Opposite Forces

You can find a strategic competitive advantage in an organizational and cultural context by seeking to leverage, rather than diminish, opposite forces. "An important but widely overlooked principle of the business success  is that integrating opposites, as opposed to identifying them as inconsistencies and driving them out, unleashes power. This is true on both a personal level and on organizational level as well."2 To be successful in today's complex, rapidly changing and highly competitive world, you must embrace and manage critical opposites... More

Cross-Functional Excellence

Although innovation is driven by technology, required competence extends beyond technical know-how. In the new knowledge economy and knowledge-based enterprises, systemic innovative solutions arise from complex interactions between many individuals, organizations and environmental factors. The boundaries between products and services fade rapidly too. If you wish to be a market leader today, you must be able to integrate in a balanced way different types of know-how that would transform stand-alone technologies, products and services into a seamless, value-rich solution... More

 Case in Point  7-Part Competitive Strategy of Microsoft

Although Bill Gates, Founder of Microsoft, built his empire on technological products, his business mastery is even more important than his technical skills, and his competitive urge is a huge driving force.

The early success of Microsoft was founded on the company's 7-part competitive strategy... More

 

 Discover much more in the

FULL VERSION of e-Coach

Five Sources of Competitive Advantage...

Competing: The Art, Science, and Practice...

Defining Your Core Competences: 3 Main Characteristics...

People as the Main Source of Competitive Advantage...

Trust as a Source of Competitive Advantage...

Owning Your Competitive Advantage...

Two Basic Ways to Compete and Prosper in Any Market...

Three Common Traits of Marketplace Champions...

Three Primary Sources of Distinctive Capabilities...

Leveraging the Power of Knowledge...

The Power of Connectivity...

Value Innovation...

Inclusive Approach...

Sustainable Business Models...

Sustainable Growth Strategies...

Barriers to Entry as a Source of Competitive Advantage...

Building on Your Core Competencies and Accessing Missing Ones...

Dynamic Strategy as a Source of Sustainable Competitive Advantage...

The Role of Intellectual Property Rights (IPR) and Strategy...

Continuous Improvement Firm (CIF)...

Enterprise-wide Business Process Management (EBPM)...

Virtual Integration as a Source of Competitive Advantage...

Creating a Workforce that Would Provide a Competitive Advantage...

Trust as a Source of Competitive Advantage...

Tacit Knowledge as a Source of Sustainable Competitive Advantage...

Creative Leadership...

7-S Model Organize Your Company for Competitive Advantage...

Behaving Like a Small Company...

Moving with Speed - Staying Ahead of Your Competition...

 Case in Point  General Electric (GE)...

 Case in Point  Dell Computer Corporation...

 Case in Point  Warren Buffet's Investment Criteria...

 Case in Point  Microsoft's Concept of Network Externality...

 Case in Point  Amazon.com...

 Case in Point  Toyota...

 Case in Point  Fun4Biz...

 

   

   

 

 

Sustainable Competitive Advantage

References:

  1. "Smart Business", Jim Botkin

  2. "Extreme Management", Mark Stevens

  3. "Relentless Growth", Christopher Meyer

  4. "Leading Change", James O'Toole

  5. "It's not the Big and eats the Small... it's the Fast that eats the Slow", J. Jennings, L. Haughton

  6. "Strategy and the Delusion of Grand Designs", John Kay

  7. "The Power of Simplicity", Jack Trout

  8. "The Centerless Corporation", Bruce A.Pasternack and Albert. J. Viscio

  9. "Leading on the Edge off Chaos", Emmet C. Murphy and Mark A. Murphy

  10. "Building Tomorrow's Company", Philip Sadler

  11. Jack Welch, speech, General Electric Annual Meetings, Waukesha, April 27, 1988

  12. "Direct from Dell", Michael Dell with Catherine Fredman

  13. "Strategic Management: Competitiveness and Globalization", Edition 4, Thomson Learning

  14. "The Leadership Crash Course", Paul Taffinder