A simple short unveiling to Competitive Advantage
Phil Wilton MBA
Strategic Advisor with the NorthEast Consulting Alliance-NECA | Definitivly naviagating businesses through both internal and external disruption | Strategic Advisor to multiple for and non profit businesses
Simply unveiling the Power of Competitive Advantage
In the ever-evolving landscape of business strategy, the concept of competitive advantage often takes center stage. But what does it really mean, and how can you achieve it? Join us on a short simple journey to demystify this vital aspect of success.
Renowned strategist Michael Porter asserts that competitive advantage “stems from a multitude of 'discrete activities' within a company. These encompass designing, producing, marketing, delivering, and supporting your products or services”. To outshine your competition, excellence in all these areas is essential.
Recently I have been observing the marketing strategies of a ‘life coach’ on LinkedIn. I’m particularly looking at her ‘discrete activities’ and how she is able to swiftly and consistently market her services, and herself with impressive results. This underscores the immense effort that goes into effective marketing. Behind the scenes though, she had designed and produced her service, is now successfully marketing that service, and supporting her clients, on her deliverables.
The Resource-Based view of Strategy:
Delving further into Porter's assertation, specifically with regards to his emphasis on 'discrete activities' will lead you to Jay Barney's Resource-Based View of Strategy. Barney emphasizes is specifically on the internal workings of an organization, and how your organization, its products, or services are structured. What does this mean in practice? It means you will need to explore and understand internally what, and how you plan to be effective in deploying your business. That means understanding what it is you are offering as a competitive advantage. To achieve this, you will need to succeed in all of the following;
·?????? Value: Do you offer something or someone of exceptional value? Consider Richard Branson's powerful brand presence, or Apple’s. Your 'something' could be a product, service, or organizational attribute that solves problems or addresses customer pain points. This is your business adding value to your clients.
·?????? Rarity: Rarity implies offering something uncommon in your marketplace. It could be a unique asset, a distinctive feature in your product or service, or groundbreaking processes. Think of the iPhone's groundbreaking combination of not just being a mobile phone, but also delivering music, email, and internet connectivity on a single device. It’s been a global game changer. Although competition has caught up, Apple had ‘first movers’ advantage’ in the global market.
·?????? Imitable: This involves the replication or substitution of competitors' resources and capabilities. Toyota's enhancement of the automobile assembly line process, enhanced Toyota’s manufacturing processes as a world recognized leader in this field. This is a prime example. But beware here as your competition will be likewise looking at you, and seeing if it can copy or better your advantage.
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·?????? Organization: Organizational capabilities are vital. Are your resources strategically aligned to achieve your business goals? ?Do you have the required resource assets, in the right places, to accommodate those business goals. Are you effectively utilizing the right social media platforms as well as using other resources?
Unlocking Sustained Competitive Advantage
The ultimate goal is to answer affirmatively ‘yes’ to all the above VRIO aspects. If you can do so, you will achieve a sustained competitive advantage that can propel your business to new heights.
If you would like more insights into the Resource-Based View of Strategy, you'll find a wealth of information in my book, "Simple Strategic Planning." https://tinyurl.com/5c5fznpf It may require some investigative effort on your part, but the rewards are boundless. Alternatively feel free to reach out and connect with any questions you may have.
Join us on this strategic journey, where simplicity meets success. Competitive advantage is within your reach. Until next time, stay competitive!
"I’m Phil Wilton, your Executives Outcomes are my business, because your executive decisions, and your outcomes are just as important to me, as they are to your business’s success."