In the previous article I discovered 12 sources of sustainable competitive advantage … However, in this article; I will share with you companies that have become market leaders by exploiting various opportunities for competitive advantage … Therefore, without wasting your time, here is examples of companies with a sustainable competitive advantage in their niche or industry …
Example of companies with a sustainable competitive advantage
1. Strong research and innovation
The tech industry is one of the main industries in terms of research and innovation. And when it comes to setting the tone with innovation as a lever; Apple and Sony are two companies that have maintained their leadership position by using innovation as a competitive advantage.
2.brand popularity
Being recognized globally as a respected brand is an enduring competitive advantage that companies like Virgin, Apple and Coca Cola have used as leverage to maintain their market power for years. Virgin is a company that has used its brand as leverage to enter new markets into entirely new territories.
3. Company reputation
Corporate reputation is a form of sustainable competitive advantage that companies such as Price Waterhouse and Berkshire Hathaway use to become world class properties.
4. Strategic strengths
Strategic assets such as patents are an important source of sustainable competitive advantage, and General Electric has stood the test of time with several patents held. Remember, ownership of these strategic assets has made General Electric one of the most powerful companies in the world.
5.Large volume production
The Dangote Group of Companies has become one of the leading conglomerates in Africa due to its ability to produce high volume goods and offer a uniform price across Nigeria.
6. Access to working capital
As a rule, state-owned enterprises ( listed companies ) have a sustainable competitive advantage over private companies because of their endless ability to raise capital from the public. Look at how Oracle acquired 57 companies in five years, and Reliance Industries invested $ 1 billion in one fell swoop to open a chain of retail stores.
7. Barriers to entry
Barriers to entry due to government restrictions and regulations are a source of lasting competitive advantage for companies like Telmex and Chevron.
8. Great product or customer support
IKEA has become a market leader in the furniture industry due to its ability to offer a top quality product at affordable prices; backed by a strong customer support system.
9. Exclusive resale or distribution rights
The Coscharis Group has become one of the leading automotive retailers in Nigeria and West Africa as a whole thanks to the exclusive presence of the BMW brand throughout West Africa.
10 Ownership of capital goods
Owning capital goods can be a source of lasting competitive advantage, and Julius Berger has proven it by becoming a leading company in the construction industry.
11. Flexibility
The ability to change quickly is the strength and source of lasting competitive advantage that Microsoft has used to become the world’s largest software publisher.
12. Speed and time
Speed and timing were once an underrated source of lasting competitive advantage until FedEx and Domino Pizza used it as leverage to become industry leaders.
13. Low price
Wal-Mart is the most capitalized company in the world at the time of this writing. Thanks to the low price strategy, which has become a strong source of competitive advantage.
13. Superior database management and data processing capabilities
GTBank, ATT, Google, Facebook have become market leaders in their various niches due to their superior capabilities in database management and data processing.
In conclusion, it is the sources of sustainable competitive advantage and the respective companies that have taken advantage of this advantage. The message I’m trying to get across in this article is that you don’t have to win at all levels; you just need to win at the same level.If you can’t win with constant innovation or low cost, you can win with speed and flexibility.
