Check out the myths of competitive advantage

[sunandaC]

The myth of competitive advantage arises from flawed reasoning. I call them the assumptions of novelty, ingenuity, and permanence.

Novelty

Novelty refers to the attempts by firms to obtain an advantage by limiting competition through something that makes them different from their competitors. A modern day example would be the so-called Unique Selling Proposition. With 7 billion people on the planet, the fact is that the world just too big of a place to assume that you're the only one that does whatever you do in the way that you do.

Ingenuity

Ingenuity refers to companies that believe that they alone are clever enough to make their products or services substantially different from their competitors. If these firms really were as smart as they believed, there wold be no need for patent law and copyrights. However, one of the reasons for patents laws is to enable pharmaceuticals, for example, to recover their research and development costs and still make a profit.

Permanence

Permanence suggests that a given company, having attained its advantage, is also the only one that is able to sustain it, while their competitors can not. The truth is that if your company can do it, so can many others, and history is filled with examples that illustrate this

 

[bbageek]

I am getting to learn the new topics here. I don't know when I will be reading these topics in my own BBA program. However, learning in advance isn't a bad idea. It will help me become more competent. So, thanks for your post!