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Tilt: Shifting Your Strategy from Products to Customers by Niraj Dawar

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3. Seizing the Downstream Advantage

Companies that tilt downstream are not just escaping the barren upstream playing fields; they are seizing new and valuable sources of competitive advantage. But what exactly is downstream competitive advantage, and why is it different from and better than upstream competitive advantage? In the previous chapters, we’ve looked at a number of examples of downstream innovation, that is, new forms of value that create competitive advantage. Let’s build on those to examine what makes downstream advantage unique.

Strategy is the means by which a business entity seeks to outperform competitors. In other words, strategy is a quest for a wrinkle in the market that will allow a firm to generate returns greater than those ...

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