Every company, whether it’s large one or small one, should strike fast by creating a competitive advantage. A competitive advantage can set the business apart from competitors and gives a very unique position in the market that is special to its competition. That’s what makes customer want to buy from one business rather than from its competitors.
Warren Buffet always talks about a sustainable competitive advantage and he always look for the companies who have it before and do research before investing in them. A sustainable competitive advantage is an advantage that will continue in the future. He often refers to a sustainable competitive advantage, as it is a route to entry for other businesses. The moat analogy is a good one as a moat’s sole purpose is to dissuade a siege on the castle by rival forces. If forces want to take the castle, they can sure take it, but the potential cost in casualties as a result of the moat is often significant enough to keep them from trying.
Starbucks itself is also a very sustainable competitive advantage in location. By picking locations near bus stations and train stations they promise to be the first coffee location that consumers encounter.
Safeco’s sustainable competitive advantage is in cost of production. By removing the insurance agent and dealing directly with customers, costs are kept significantly lower than those of the competition.
Tesco’s sustainable competitive advantage is their distribution system. With one of the most