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TheGeometryofCompetitionByBruceChewAformerbusinessschoolprofessorreflectsonthemeaningandexistenceofcompetitiveadvantage.Hisfinding:Competitiveadvantageisveryrare,competitivepositionisveryreal.Identifying,building,andtalkingaboutadvantagehavebeenattheheartofmyworkbothasaconsultantandabusinessschoolprofessorforalmost20years.YettoomuchofthetimeI’vefoundmyownandothersanalysesofadvantagetobelikethefamousSupremeCourtwritingonpornography:“IknowitwhenIseeit.”AndtruthtotellIdon’tseeitveryoften.ConsiderameetingIhadrecentlyoverseaswithagroupofmanagerswhomadeanindustrialproduct.ForthefirstpartofthedayI’dtalkedatlengthaboutthesourcesofcompetitiveadvantage.DuringtheafternoonIleadabreakoutsessiononstrategywherethequestiononthetablewas:Whatisyourcompetitiveadvantage?Itquicklybecameclearthattheywerenotthelowcostproducer.Wellthenwemustbedifferentiated.Well,maybe,buthow?Onemanagerresponded,“wehaveagoodreputation.”Towhichthegroupreplied,thatisnotreallyacompetitiveadvantage.Anothersuggested,“Ourproductshavefeaturesnoneofourcompetitorshave.”“Yeah,buttheywillsoon,”saidanother.Wehavegoodcustomerrelationships.Yes,butthatisnotacompetitiveadvantageeither.Finallyinaveryseniormanagerjumpedupandshouted“Wedon’thaveanyfreakingadvantage—gotit?Haseverybodygotthat?Noadvantage.None!”HediditwithafairamountofvolumeandprofanitydisplayinghisfrustrationbornenotfromhiscolleaguesbutfromhissheerinabilitytomakehisbusinessfitwithintheframeworksIhadsoeagerlytaughtearlierintheday.Andthatlessonhasstoodthetestoftime.Mostcompetitorsdonothaveacompetitiveadvantage.Thatdoesnotmeantheydon’tdothingswell.Theymayhavegoodproducts,goodcustomerrelations,andsomeexcellentcapabilities,butthosethingsdonotadduptoacompetitiveadvantage.Trulydominatingamarketplaceorevenamarketsegmentisanexperienceenjoyedbyonlyafewfirms.Andperhapsbecauseitishardtopointtointhemarketplace,ithasbecomefashionabletoarguethatcompetitiveadvantageisnolongerrelevantintheneweconomy.Thatitisn’tachievableorthatitissimplytoost
