Strategic Competitive Advantagecampbellcampbell322006-03-26T07:31:00Z2006-11-04T07:48:00Z13742136medEsmart175250511.6568Strategic Competitive AdvantageA company has a strategic competitive advantage (SCA) when it has a product, capability, or attribute that creates a barrier to market entry by potential followers and enables the firm to increase market share. An SCA enables a firm to provide a better, faster, or cheaper offering to customers than competing firms that lack the advantage. There are two basic kinds of SCAs: Product SCAs and Process SCAs. Product SCAs usually derive from patents or licenses. As an example, Microsoft (MS) pioneered the use of operating system software licenses to microcomputer manufacturers. MS thereby gained an SCA that enabled it to drive competing firms (Apple, Atari, Commodore, Kaypro) from the marketplace. Is there a process for which you can obtain a patent or license that will confer a strategic competitive advantage for you?Process SCAs arise when a company is consistently able to profitably provide its offering at prices that prevent competing firms from making a profit. Process SCAs usually arise through innovation. As the earliest retail adopter of point of sale inventory management systems, Walmart was able to consistently drive its logistics costs below that of its competitors, and has earned 10-20 percent profit margins in almost all of the past 25 years. Economies of scale are another type of process SCAs. Dell effectively drove IBM, Gateway, Hewlett-Packard, and Compaq out of the personal computer marketplace by creating an economy of scale in its distribution system. Developing a better way of performing a task is another type of process SCA. GeoSystems has gained some recognition for a Process SCA by developing a way of analyzing DNA to detect viruses. Most service businesses earn SCAs when they are perceived to be the best at doing something of value to their customers. Within your business, your area of expertise will most likely be your most significant strategic competitive advantage.Is there a credential(s) for which you can qualify that will differentiate your business and confer a strategic competitive advantage for you?Recommendation: Focus on your specialty, and keep up with emerging trends in technology. Identify the credentialing organizations for the professional services you provide. Subscribe to the trade journals.Remember the Internet. There is an immense amount of information available on the Web, and Business and Ecology Consulting can show you tools that will bring the information you need to your Inbox.