This document discusses competitive advantage and how to develop and maintain a sustainable competitive advantage. It defines competitive advantage as being sustainable, hard to copy, unique, and superior to competitors. It presents a strategic planning model with marketing, operations, innovation, human resources, and financial strategies driving a sustainable competitive advantage. It emphasizes the importance of understanding customers, competitors, and one's own business strengths. Developing a sustainable competitive advantage requires aligning all systems and processes, considering future scenarios, and continually evaluating changes and results.

1. Competitive Advantage
(Getting the most from what we are NOW and
making your advantage sustainable)

2. Competitive advantage
Its why our customers come to “us” and not “them”.
– Sustainable
– Hard to copy
– Unique
– Superior to the competition
– Applicable to multiple situations

3. STRATEGIC PLANNING MODEL
It drives the business
SUSTAINABLE COMPETITIVE ADVANTAGE
MARKETING STRATEGY
OPERATIONS STRATEGY
HUMAN
INNOVATION FINANCIAL
RESOURCE
STRATEGY STRATEGY
STRATEGY

4. Its simple to find
• Know your customers
• Your competitors
• And know your business

5. ....But hard to do

6. ... But hard to do
• It rests on:
– The firm‟s capabilities
– A combination of tangible and intangible
assets.
– The knowledge of its employees

7. ... But hard to do
At its best it is:
...„unique, socially complex and context
specific.. .which competitors find
difficult to understand let alone
duplicate‟ Galbreath

8. Once established it requires:
• All systems and processes to be
aligned
• Scenarios considered, changes
made, results evaluated.

9. Starting the process...
1. Select 10-20 factors that are important to
your clients.
2. Rate on the scale 1 - 10:
1. Rate value to your customers
2. Rate your firm against your competitors
3. Rate the impact on your firm (if this was to be the thrust of all
activities... What level of passion would it create in the firm?)

10. Example

11. Test for fit.
• Does it feel right? Complete the sentence... We
will win by....
• We will win by ... having the highest quality
water vessels
• We will win by .... having the best service
• How does it feel?

12. Make it sustainable - Get the business aligned
HOW do we
get there?
Business
Plan
Strategic
Planning
WHERE will we be
in the future?

13. ....Make it sustainable
• Know your customer needs in 10 years
• Expect your current service and
products to be defunct in 3 years

14. ... To make it sustainable
• It‟s employee know-how that cements
the difference
• Align systems and processes
– Create a complex web of activities that‟s
difficult to replicate
• Plan your business accordingly

15. It needs to be told
• There is one competitive positioning
strategy, but many advantages to be
promoted

16. Promotion
• On the next 2 slides are promotional
statements for two dry cleaning firms..
– Same price
– Similar location
– Each high quality
• Where would you take your precious
item?

17. Would you choose here?
“All our staff are trained to the highest standards and
we seek to provide only the best of care”

18. Or here?
Before finishing your gown, we conduct a 10 point
check to ensure that it has been done to our high
standards
All items are reviewed by a supervisor before
cleaning commences to ensure the best cleaning
method is selected
We clean 95% of all the wedding gowns worn at
private school weddings in Perth
All our staff have been with us for more than 5 years
All of our staff attend a minimum of 3 days training in
garment cleaning and protection
In each of the last 10 years Central Dry cleaning has
won the international “Ecology in Dry Cleaning
Award”.

19. Competitive advantages criteria
Competitive advantage is objective, not subjective. You can
see it and feel it
Its quantifiable, not arbitrary. You don‟t say we have great
service, say:
We clean 95% of all the wedding gowns worn at
private school weddings in Perth
Its not cliche. Say what you do, that other‟s don‟t.
Before design work commences your specifications are
submitted to our international team, to
ensure the best method is selected.
It isn’t claimed by the competitors. It does not need to be
novel, it just isn‟t claimed. Even if its industry standards, claim it

20. Get it right
Know your customers ...Now and in 10 years
Know your competitors ..... Know their
difference
Know what will motivate you and your staff
Make it sustainable....
Structure your business to make sure your
SCA is supported by systems and processes

21. Its all about outcomes
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