From Seth Godin:
Some of the ways you might build or maintain a competitive advantage:
Access to hard-to-replicate Talent
Hard-earned skills
Higher productivity due to insight or organization allowing you to be cheaper
Low cost of living for you and your staff allowing you to be cheaper
Protected or secret technology or trade secrets
Existing relationships (switching costs working in your favor)
Virally organized product and organization
Large network of users already and a network effect to support you
Focus on speed
Monopoly power and the willingness to use it
Unique story that resonates with the worldview of your target audience
Shelf space due to incumbency
Large media budget
Insight into worldview of prospects—making what they care about
Emotional intelligence of your salesforce or customer service people
Access to capital and willingness to lose money to build share
Connection to community
Not on this list, at least not prominently, are “we are #1!”, “we are better!” and “we try harder.” Cheerleading skills are not a competitive advantage in most settings. And, with few exceptions, neither is “we are new.” Also, “we are better and I can prove it,” is rarely a successful argument.
