Do you want to build a strong competitive business brand? If YES, here are 25 example of companies with sustained competitive advantage in their industry. Having discussed the sources of sustainable competitive advantage, we will now take a look at various companies that became market leaders by exploiting the various avenues of competitive advantage available. So without wasting your time, below are examples of companies with sustained competitive advantage in their niche or industry.
25 Example of Companies with Sustained Competitive Advantage
Table of Content
- 1. Strong research and Innovation
- 2. Brand Popularity
- 3. Corporate reputation
- 4. Strategic assets
- 5. High volume production
- 6. Access to working Capital
- 7. Barriers to Entry
- 8. Superior Product or customer support
- 9. Exclusive re-selling or distribution rights
- 10. Ownership of capital equipment
- 11. Flexibility
- 12. Speed and Time
- 13. Low pricing
- 14. Superior database management and data processing capabilities
1. Strong research and Innovation
The technology industry is one of the leading industries with respect to strong research and innovation. And when it comes to setting the pace using innovation as leverage; Apple and Sony are the two companies that have held their leadership position using innovation as a competitive advantage.
2. Brand Popularity
Being recognized all over the world as a respected brand is a sustained competitive advantage that companies such as Virgin, Apple and Coca cola have used as leverage to hold the market sway for years. Virgin is a company that has used its brand name as leverage to break into new markets in completely new territories.
3. Corporate reputation
Corporate reputation is a form of sustained competitive advantage that companies such as Price Waterhouse and Berkshire Hathaway have leveraged to become world class entities.
4. Strategic assets
Holding strategic assets such as patents is a strong source of sustained competitive advantage and General Electric has stood the test of time because of the several patents held. Mind you that possession of these strategic assets has made General Electric one of the most powerful companies in the world.
5. High volume production
Dangote Group of companies became one of the leading conglomerates in Africa because of its ability to produce goods on high volume and ensure a uniform price throughout Nigeria.
6. Access to working Capital
Generally, public liability companies (quoted companies) have a sustained competitive advantage over private companies because of their infinite capacity to raise capital from the public. Take a look at how Oracle acquired 57 companies in a space of five years and Reliance Industries investing a billion dollars in a single swoop to open a chain of retail stores.
7. Barriers to Entry
8. Superior Product or customer support
IKEA has become a market leader in the furniture industry because of its ability to provide superior product at an affordable rate; backed by a strong customer support system.
9. Exclusive re-selling or distribution rights
The Coscharis Group has become one of the leading automobile retailers in Nigeria and West Africa at large because of its possession of exclusive distributorship of BMW brand throughout West Africa.
10. Ownership of capital equipment
Ownership of capital equipment can be a source of sustained competitive advantage and Julius Berger has proved it by becoming a leading company in the construction industry.
The ability to change swiftly is a strength and source of sustained competitive advantage that Microsoft leveraged upon to become the largest software company in the world.
12. Speed and Time
Speed and time was once an overlooked source of sustained competitive advantage until FedEx and Domino Pizza used it as leverage to become industrial pacesetters.
13. Low pricing
Wal-Mart as at the time of this writing is the most capitalized company in the world. Thanks to its low Pricing Strategy that became its strong source of competitive advantage.
14. Superior database management and data processing capabilities
GTBank, AT&T, Google, Facebook have become market leaders in their various niches because of the superior database management and data processing capabilities they possess.
As a final note, these are the sources of sustained competitive advantage and the corresponding companies that leveraged such advantage. The message I am trying to pass across through this article is that you don’t have to win at every level; you just have to win at one level. If you can’t win with constant innovation or low price, you can win with speed and flexibility.
Frequently Asked Questions
What Does Competitive Advantage Mean?
According to Investopedia, “competitive advantage simply means the unique factors that allow a company to produce goods or services better or more cheaply than its competitors. Note that these factors let the productive entity to generate more sales or superior margins compared to its market rivals.”
What Is Sustained Competitive Advantage?
Simply put, a sustainable competitive advantage signifies a company’s unique abilities, assets, or attributes that are hard to recreate, duplicate, or surpass in success. These advantages are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors.
How Does Competitive Advantage Work?
Competitive advantage is a unique trait a company has that may not be easily recreated. This is because the competitive advantage is an attribute that a business cultivates over time. There are three primary factors that can play a role in how a business might shape and develop its competitive advantage: a thorough understanding of the target market, implementing strategies, and monitoring progress and performance.
Why Is Having A Competitive Advantage Important?
- It helps you more explicitly measure progress
- Helps your organization grow certainty
- Let’s you to focus resources (time, talent, and treasure) for maximum ROI
- Inculcates constancy and predictability to your revenue streams
- Helps you achieve organizational momentum
- Reduces unnecessary marketing, recruiting, and fundraising expenditures
What Is Competitive Advantage In The Field Of Strategic Management?
Competitive advantage in the field of strategic management is more or less anything that a firm does very well when compared with rival firms. Have it in mind that it accrues to a firm when it does something that the rivals cannot do or owns something that the rival firms desire.
How Is Competitive Advantage Different From Comparative Advantage?
Comparative advantage happens when a company or country can produce a product or service at a relatively cheaper rate than their competition or other countries. Meanwhile, Competitive advantage happens when a company surfaces as a leader in its market sector owing to the ability to produce a product or deliver services at higher profits than the competition and at a lower cost to consumers. Have it in mind that the primary difference remains that competitive advantages are decided by higher profits and lower costs to consumers, while comparative advantages are decided by the ease of production.
What Are Some Common Strategies For Achieving Competitive Advantage?
- The Information Advantage.
- Cost Leadership
- Adaptability Competitive Advantage.
- Innovative Strategy.
- Operational Effectiveness Strategy.
- Technology Based Competitive Strategy.
How Do You Know If A Company Has A Competitive Advantage?
Have it in mind that a company has a competitive advantage once it can increase its market share through increased efficiency or productivity over its competitors.
When Does A Company Achieve A Sustainable Competitive Advantage?
According to a business professor at Harvard Business School, a company achieves sustainable competitive advantage once it attains one (or more) of the following three criteria: Cost leadership — providing extensive value at a lower rate than competitors, Differentiation — offering better (or unique) products and service than others, Focus — acknowledging, understanding, and committing to a target market in a way no other company can.
What Is The Source Of The Google’s Competitive Advantage?
Although Google is well renowned for having many competitive advantages, it possible to narrow Google’s competitive advantages into three main categories, and they include;
- Technological infrastructure
- Innovative services
- Market share
How Can A Strong, Positive Culture Enhance A Firm’s Competitive Advantage?
According to experts, a positive corporate culture tends to help companies meet significantly higher organizational effectiveness, including heightened productivity, employee engagement, financial performance, and customer satisfaction.
What Is Supply Chain Management?
Supply chain management is more or less the process of merging the supply and demand management, not only within the organization, but also across all other members and channels in the supply chain so they work together most cleanly and successfully.
Why Do Larger Companies Tend To Have Competitive Advantages?
- Opportunities for Economies of Scale
- More Attractive Compensation Packages
- Diversified Ways to Generate Revenue
- Greater Brand Recognition
- More Repeat Business
- Greater Access to Funding
Will Privacy Be The Source Of Competitive Advantage Blackberry Needs To Succeed?
Yes, every company has a substantial interest in protecting and respecting the privacy of their employees and customers. Note that the inability to secure these kinds of crucial data and be transparent can cause an existential threat to business and brand reputation. Reputation can take years to build, but only minutes to lose.