GEIB M9L1V2

Leaders of great companies need to understand their organizations' value chain to leverage them for sustainability and growth. Value chains are essential for creating competitive advantage and facilitating growth in companies.

Sustainable competitive advantage differentiates a company from its competitors, allowing it to earn unusual profitability. Companies like Walmart, Amazon, and Target have successfully maintained sustainable competitive advantage over time, despite economic theories predicting similar profits for all players in an industry.

Companies need to develop unique sources of competitive advantage that their competitors cannot replicate easily. Creating barriers that competitors cannot or will not overcome is crucial for sustaining competitive advantage in the long term.

Creating barriers to entry is essential for maintaining competitive advantage. Companies like McDonald's and Burger King have established barriers by offering differentiated products at higher prices that deter competitors from entering their market space.

Innovation and speed are key factors for maintaining a competitive edge. Amazon's focus on speed in delivering products to customers has created a barrier that competitors are hesitant to replicate, ensuring Amazon's market dominance.