In the e-commerce dominance era, Jack Welch's famous quote emphasizes the importance of

competitive advantage in the world of diversified products and services. In another view, Sean

Covey rejects the outside factors, a competitive advantage would bring sustainable success. Both

of them are accurate and showcase the different views of competitive advantage. Most of

businesses will take advantage of the chance to increase their market share by clearly

understanding the strength of the five forces.

Competitive advantage is the unique strength or ability that makes the company different from

other competitors. When firms can provide more benefits to customers at a reasonable price than

their competitors do, they are creating a competitive advantage. From outstanding technology,

automatic supply chain to minimize the cost, or even choosing the right competitors…all of

those will get a loyal and vibrant community around the brand. Take Apple, Tesla, Google…etc

as examples, they also have a uniqueness that no organization can intimate.

The fact that competitive advantage is key to the company's growth, it is the shield to protect the

firm from the fluctuation of the labor market and market price. If a company does not have any

competitive advantage or uniqueness, it would be on the edge of collapse because other rivals

would copy and use their competitive advantages to account for customer loyalty. In a market

with similar products and services, a strong competitive advantage attracts and retains customers.

It allows a company to position at premium pricing, adapt to economic crisis with greater

resilience, and attract top talent seeking to be part of team.

Developing a competitive advantage requires a deep understanding of the target market,

competitors' strengths and weaknesses, and the company's ability. Investing in R&D to create

innovative products or processes is also one strategy. Focus on quality and customer service will
connect the customers with brand identity, or even exploit interrelationships will bring higher

benefit, lower cost. Another approach is building strong relationships with suppliers to make sure

easily access to high-quality materials at competitive prices. It's a long-run process that requires

immediate innovation and adaptation, so it will make difficult for competitors to surpass.

Reference

Hamel, G., & Prahalad, C. K. (1994). Competing for the future: Creating and sustaining superior

performance. Harvard Business School Press.

Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors.

Free Press.

Pierce and Newstorm. The Manager’s Bookshelf: A Mosaic of Contemporary Views. (10th

edition*). Pearson