How sustainable is your company’s competitive advantage?

The competitive advantages that you have today in your businesses might not be able to sustain the growth and profitability for your business tomorrow?

This is a shocking and frightening truth that each entrepreneur, business owner, company president, and salesperson has to face daily. What brought you to the table today might not get you in the room tomorrow.  Rita McGrath of the Columbia business school has some sobering thoughts regarding how competitive advantage is changing and might possibly no longer exist.

One of the key concepts that she will be presenting in her forthcoming book is the idea that in the past, companies primarily faced competition from within the industries that they were in.  For example, Chevrolet expected competition from Ford and visa versa.  Both Chevrolet and Ford were constantly working to sustain a competitive advantage over the other as well as other auto makers within the industry. McGrath asks the question, what would have happened if both Chevrolet and Ford faced competition companies from outside their industry such as  Virgin Airlines?  McGrath points out that times have changed and that this type of competitive landscape is now a norm.  No longer do companies have to face competition from within their industry only, they have to compete now with companies that were in other arenas and outside of their industries. With this dramatic shift from competing only within one industry to now competing within arenas, companies will have to adapt new strategies to compete because their competitive advantages are more temporary and fluid today than they were even a decade ago.  McGrath says that all is not lost and that she has a plan for helping companies re-engineer their strategies for remaining competitive and profitable in the days and years ahead.

Rita McGrath is an expert on strategy in volatile and uncertain environments. She works with senior leadership teams to help them create an entrepreneurial mindset, drive growth and recognize when and how to disengage. In addition to her popular speaking engagements, she works in partnership with companies who seek to accelerate their competitive effectiveness.

For more information from Rita visit competitive advantage

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