Should You be in Business?
1 min read

Should You be in Business?

What is Sustainable Competitive Advantage and How You Can Use it.
Should You be in Business?
Photo by UX Indonesia / Unsplash

Sustainable competitive advantage (SCA) is a unique combination of factors that gives the company advantage over the competition. It is the compelling reason to be in business.

SCA goes beyond a key leverage point, it must be sustainable, strategic, significant, or some combination of these three.

SCA can be defined by some of these factors:

  • Technology
  • Timing
  • Geography
  • Synergy
  • Lower cost of operation
  • Core competencies
  • Unique selling proposition
  • People
  • Product differential
  • Trademark

If you don’t have a SCA, you might not want to be in the business.

You need SCA to drive the business and to increase volume/share growth, which is essential for profitability.

An SCA has three typical characteristics:

  • It’s important to the customer and consumer
  • The competition wants it, doesn’t have i, and cannot get it without great difficulty, if at all
  • You have it and can keep it for a long time

When identifying a SCA, there are four options:

  • You already have one
  • You can get one soon
  • You don’t have one but you can buildone
  • You don’t have one, you cannot get one, but there is still a very strong compelling reason to compete in this niche