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:
- Lower cost of operation
- Core competencies
- Unique selling proposition
- Product differential
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