Time to go fishing.
A Sustainable Competitive Advantage (SCA) is a unique offering that is valued by your customer and is not available from the competition. It is not what you think it is or you what want it to be. It is what your customer believes and that is what counts. This perception is everything.
Your SCA is made up distinctive competencies, which are unique attributes or benefits that are valued by the customer. Simply stated, this means that you do different things or that you do things differently from your competition. These distinctive competencies are so valuable to your customer that they will choose your offering instead of the competition. These benefits could be unique product features, product design, method of delivery, or even your brand.
An example of doing things differently is Starbucks. They serve coffee, which is hardly unique, but they make the coffee buying experience almost a lifestyle. Have you seen the lines at this place? And, people go to Starbucks just to hang out and be seen. An example of doing different things might be MySpace; although not the first social networking site, they targeted the younger crowd and created an environment to connect and express yourself with 100 million other individuals. They reinvented how people stay in touch with other people.
A competitive advantage is sustainable if others can’t copy or deliver the same thing, or if the cost or the time to develop a competing solution is very significant. Being first to market may provide a competitive advantage in the short run, but it is seldom sustainable. For example, the first MP3 players were released by firm called RIO and Eiger Labs. Ever hear of them?
To determine your SCA list your distinctive competencies, which are the unique attributes or benefits that are valued by your customers. Then list your chief competitor’s distinctive competencies. Compare both lists. Delete the attributes or benefits from your list that you share with your competitor since they are not truly unique. The remaining items on your list make up your competitive advantage.
Next, ask yourself if this SCA is really sustainable? Can this competitive advantage be duplicated and, if so, how soon? If your competitive advantage is easily cloned, then you had better come up with some new attributes because you are not alone.
Remember, only dead fish swim with the current.
John Bradley Jackson
© Copyright 2006 All rights reserved.
My new book “First, Best, or Different” is now available at www.firstbestordifferent.com!
Please buy my book!
P. S. Thanks to Dr. Michael Porter who coined the term Sustainable Competitive Advantage back in the 80’s.