As Michael Porter of Harvard Business School once noted, the sources of competitive advantage center around factors like cost leadership, differentiation focus, and differentiation leadership. In the digital age, consider adding six additional factors to the mix: stickiness, barriers to entry, inimitability, trust and love, scalability, sustainability, and speed. Learn how to define each in this video, making them relevant to your business.
- How do you gain competitive advantage…over your competitors?…This is an important question…that every for-profit company's executives…should ask themselves.…Is the answer to that question…that would've been provided 20 years ago still relevant?…Let's have a look.…The author of the seminal work on Competitive Advantage,…Michael Porter of Harvard Business School,…noted that the sources of competitive advantage include:…cost leadership, aiming to become the lowest cost producer,…differentiation focus, differentiating within one…or a small number of target market segments,…and differentiation leadership, targeting larger markets…to gain advantage across an entire industry.…
These remain of interest but there's nuance…that needs to be taken into consideration,…bearing in mind the changes…that the digital economy have wrought.…It's important to bear in mind that customers…have more complete and up-to-date access to information…about your product and your competitor's products.…Customers, especially younger ones,…seek an emotional connection…
- Explain how accountability and collaboration can be synergistic.
- Recognize limitations when pursuing new ideas in an innovation lab.
- List the five stages of digital maturity.
- Identify the benefit of transparency in strategic thinking.
- Name one focus that would form a good basis for a capability team.