The purpose of competition is to benefit the consumer—to keep prices down and quality up. It also benefits the economy by ensuring the most efficient use of resources and encouraging enterprise.
However, the most influential producers may be able to increase market share. Sales volume may increase, but the benefits are not reflected in margins and profits—only survival.
A Competitive Advantage, however, enables you to move upwards from the competitive baseline, help customers, and increase market share and profits. But value must also exist, or your advantage will quickly disappear.
However, once your idea has been enacted, you must continuously improve it, or competitors will try to copy it.
Here is the surprise. According to a study by Michael Mauboussen, an expert in investment strategy, only 10-15% of public companies have a competitive advantage. Why? The long-term benefits of a competitive advantage offer the ability to outperform rivals and achieve superior profitability.
To create a competitive advantage, check out my website or email me at jzitek@harborcapitalgroupinc.com.
Cheers, Jim Zitek
I help companies create their competitive advantage.
