5 Sources of Durable Competitive Advantage
Summary: We often talk about undertaking an initiative in order to create “competitive advantage”, but what does that really mean? What are things you can, and should be doing? Here we examine, the five sources of durable competitive advantage. E-mail. Tweet.
There have been some pithy posts (for example here, and here written on creating durable, or sustainable, competitive advantage; however, the best I’ve ever seen was buried deep in the footnotes of a deck by Khosla Ventures.
In this deck it outlines five major sources of durable competitive advantage:
- “Special Access” to Scarce Supply
- High Switching Costs
- Fixed Cost Leverage
- Real-Time Business Process Advantage
- Ownable Network Effect
While the footnotes of the deck don’t go into much more detail, I’ll do my best to provide some explanation, and practical examples, on each of these.
Click here to learn more about each of these factors
