How To Build A Sustainable Competitive Advantage?

To build a sustainable competitive advantage, companies must develop and implement strategies to differentiate themselves from the competition. The purpose of developing a sustainable competitive advantage is to improve your organization's standing in the industry. The creation of a sustainable competitive advantage will ensure your company will outlast the competition.

Instructions

1.  Identify your core competencies. To build a sustainable competitive advantage, you must first determine what it is that your company does better than everyone else. This can be achieved by determining what your core competencies are. Your organization's core competencies are those things that your business does best. To develop a sustainable competitive advantage, you must focus your day-to-day activities on performing those core competencies that your competitors cannot easily duplicate. Many businesses take steps to eliminate their focus on non-core activities, outsourcing those that are not core competencies, so they can focus directly on what the business is really about.

2.  Perform a SWOT Analysis to identify the organization's internal Strengths and Weaknesses, as well as its external Opportunities and Threats. Businesses often make use of a SWOT analysis when developing strategic planning initiatives. Once these elements have been identified, leaders can develop a plan to take advantage of the organization's strengths and opportunities, strengthen its weaknesses and combat threats. Another effective strategy is to perform a SWOT analysis on your strongest competitors to determine how best to take advantage of their particular weaknesses and create strategies that are a step ahead of theirs.

3.  Develop a strategic management plan. The strategic management process is commonly used to improve an organization's standing within its particular industry. This process begins with the development of a concise mission statement that articulates the organization's reason for being in existence. The overall purpose of the strategic management process is to align the day-to-day activities of the business with its mission. In the strategic management process, abstract ideas for building a sustainable competitive advantage are created at the executive level before being disseminated throughout the organization for implementation at the functional level.