Definitive Business Plan, Second Edition, The

Competitive advantages

If you understand your business (see Chapter 4 ) and have analyzed your market and competitors thoroughly (following the advice in this chapter), you should have emerged with a clear understanding of where you have advantage over your competitors.

The list on page 93 indicates 12 sources of advantage – but this is not even scratching the surface. If you look hard you might find competitive advantage arising from very obscure areas of your business activities.

Competitive advantage is relative. It arises from the strongest links in your value ladder relative to your competitors. This is not quite the same thing as your core competencies, because your competitors might be more competent in the same areas. Alternatively, they ...