6/7/22, 11:19 AM 25 Example of Companies With Sustained Competitive Advantage - ProfitableVenture

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25 Example of Companies With Sustained Competitive

Advantage
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 advantag (https://www.profitableventure.com/sources-competitive-advantage/)e,
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 [show]

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1. Strong research and Innovation

The technology industry is one of the leading industries with respect to strong research and innovation
(https://www.profitableventure.com/build-brand-market-research/). 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.

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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.

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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
Barriers to entry due to government restrictions and regulations have been the source of sustained
competitive advantage for companies such as Telmex and Chevron
(https://www.profitableventure.com/cost-open-chevron-gas-franchise/).

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
(https://www.profitableventure.com/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.

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11. Flexibility
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 (https://www.profitableventure.com/factors-product-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.

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Frequently Asked Questions

1. 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.”

2. 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.

3. 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.

4. 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

5. What Is Competitive Advantage In The Field Of Strategic Management?

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6/7/22, 11:19 AM 25 Example of Companies With Sustained Competitive Advantage - ProfitableVenture

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.

6. 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.

7. What Are Some Common Strategies For Achieving Competitive Advantage?

The Information Advantage.

Cost Leadership
Differentiation
Adaptability Competitive Advantage.
Innovative Strategy.
Operational Effectiveness Strategy.
Technology Based Competitive Strategy.

8. 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.

9. 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.

10. What Is The Source Of The Google’s Competitive Advantage?

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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

11. 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.

12. 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.

13. 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

14. 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.

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