Winning Without Playing: Taylor Swift, Tesla Car and Market Competition
Competitive advantage is a myth
What’s the difference between a Tesla Car and Taylor Swift?
No sign can clearly show whether or not a company will be successful. But one indication tells me that a company may be I trouble – its leaders' reasoning about ‘competitive advantages.’
The nature of competition or Coffee-spilled laptop
Imagine that you’ve just spilled coffee on your laptop (I’ve done it, so I know how awful it feels). It’s not showing vital signs.
You have deadlines to meet, so you rush to a computer store for a new laptop.
You know for sure that you need a laptop – not a tablet, for instance. And you have, say, only $1000 in your pocket.
So, a brand offering you the best portable computer for $1000 will have a ‘competitive advantage’ – and your money.
In this particular case, the classic economic theory works by the book. But it happens only if all four conditions are met:
Customers clearly realize their needs (a laptop)
Their resources are indeed limited ($1000), and c…