When is implementing strategies well and on time a source of competitive advantage? Why and why not?
I have worked in and with various companies over the last decade or so and seen how competitive advantages can be; created, mitigated, extended, recaptured and replaced. As such I hope you find it useful to learn that timely implementation can be a competitive advantage in key situations.
When it is a competitive advantage
If your current competitors are unable to implement strategies effectively and on time, then as long as you have that capability over them it will be a competitive advantage. This is because even if they create better strategies than you, they will rarely beat your performance due to their inability to implement them. Suprisingly, based on research, this will be the case 90% of the time.
When it is not a competitive advantage
The moment a competitor has that same capability too, this will no longer be a competitive advantage. This change can occur for instance because of:
- A new entrant to the market with that same core competency
- A competitor hires a partner with the required skillset
- One of your competitors starts working with a good advisor/consultant
- If this core competency of yours is not directed towards strategies that matter to the market
- When you compete against the leaders and near-leaders of your market
Action point
Use your ability to implement strategies effectively and on time, as a gateway to a longer-lasting competitive advantage that is harder to copy by sophisticated competitors. However, keep in mind that no single competitive advantage is as long-lasting as it used to be (due to how quickly markets and competitors can evolve in part due to technology advancements). This means your business will need to continually enhance and improve how it combines its core competencies, to stay ahead of your competition.
For warning signs that help you see when to change how you compete with your competitors, take a look at the 7 points in this next article.
