Creating sustainable competitive advantage
Wednesday, 21 October, 2009 Leave a comment
Creating sustainable competitive advantage. Realistically, IF you are involved in the provision of any form of ongoing customer service, the most important element is to deliver consistency.
So, what to do?
- You can own something that’s hard to copy (like real estate).
- You can race down the pricing and scale curve, so it’s cheaper for you to do what you do because you have a head start.
- You can create switching costs, so that the hassle and cost of moving to a cheaper competitor is so great, it’s just not worth it.
- You can build a network (which can take many forms–natural monopolies are organizations where the market is better off when there’s only one of you).
- You can build a brand (shorthand for relationships, beliefs, trust, permission and word of mouth).
- You can create a constantly innovating organization where extraordinary employees thrive
Securing and maintaining “competitive advantage” is reliant upon the ability of the component parts to continue to perform/deliver beyond the period of, for example, an initial marketing campaign.