Competitive Advantage Quotes

A society's competitive advantage will come not from how well its schools teach the multiplication and periodic tables, but from how well they stimulate imagination and creativity.

A society’s competitive advantage will come not from how well its schools teach the multiplication and periodic tables, but from how well they stimulate imagination and creativity.

Not finance. Not strategy. Not technology. It is teamwork that remains the ultimate competitive advantage, both because it is so powerful and so rare.

Market research not only helps you in gaining competitive advantage, but also helps you in being prepared to handle any testing business times.

The only sustainable competitive advantage is an organization's ability to learn faster than the competition.

If you don't have a competitive advantage, don't compete.

Always treat your competitors smarter than you are.

The competitive advantages the marketplace demands is someone more human, connected, and mature. Someone with passion and energy, capable of seeing things as they are and negotiating multiple priorities as she makes useful decisions without angst. Flexible in the face of change, resilient in the face of confusion. All of these attributes are choices, not talents, and all of them are available to you.

‎10 SUGGESTIONS FOR LIVING A MORE MEANINGFUL LIFE 1. Be honest with everyone. 2. Change before you have to. 3. Control your own destiny or someone else will. 4. Face reality as it is, not as it was... or as you wish it to be. 5. Instill in others- faith, hope and self-confidence. 6. If you can't develop a competitive attitude or have a competitive advantage, don't try to compete. You'll lose. 7. Don't waste your time always looking for shortcuts. 8. Man-up when necessary. 9. Never lose faith in God. 10. Love.

The ability to learn faster from customers is the essential competitive advantage that startups must possess.

The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.4 —Warren Buffett

Of the top 10 sources of innovation, employees are the only resource that you can control and access that your competitors cannot. Employees are the one asset you have that can actually be a sustainable competitive advantage.

In an environment of turbulent change, as de Geus famously wrote: “The ability to learn faster than your competitors is the only sustainable competitive advantage.

...while extraordinary products and unique services still afford a competitive advantage, the one advantage that stands the test of time...is people.

High-quality web content that's useful, usable, and enjoyable is one of the greatest competitive advantages you can create for yourself online.

The first step of making strategy real is figuring out the big ‘aha’ to gain sustainable competitive advantage—in other words, a significant, meaningful insight about how to win.

Companies with high talent density have a permeable competitive advantage that makes them very difficult to beat.

The ability to learn faster than your competitors is the only sustainable competitive advantage.

Grasping the company's core competencies, competitive advantages, and sources of revenue is essential for strategic decision- making.

To reduce the sum of our existence to a competitive struggle for advantage among more than two hundred nations is not clear-eyed but myopic. People and nations compete, but that is not all that they do.

Mind Games: constantly bashing a brick wall with your head because you are giving all you’ve got and hardly receiving anything back (...) a series of deliberate actions or responses planned for psychological effects on you, typically for amusement or competitive advantage.

In the United States, government regulations are estimated to cost about $7,800 per employee in large businesses and about $10,600 per employee in small businesses.{662} Among other things, this suggests that the existence of numerous government regulations tends to give competitive advantages to big business, since there are apparently economies of scale in complying with these regulations.

protected businesses never, never become competitive ... Halliburton, Bechtel, Parsons, KPMG, RTI, Blackwater and all other U.S. corporations that were in Iraq to take advantage of the reconstruction were part of a vast protectionist racket whereby the U.S. government had created their markets with war, barred their competitors from even entering the race, then paid them to do the work, while guaranteeing them a profit to boot - all at taxpayer expense.

If you plan on being anything less than you are capable of being you will probably be unhappy all the days of your life. – Abraham Maslow

The easiest thing to sell is truth.

The pace and ability at which an organization is able to effectively innovate will be the determining factor of competitiveness in the future. The future is now.

giving a damn is seriously underrated and caring is a competitive advantage.

When companies truly invest in human capital to the extent that it invokes a sense of loyalty, they now have a serious competitive advantage.

Strategic use of intellectual property can give a business several years of protected competitive advantage.

Most great learners are lifelong learners. They never stop being curious. As Einstein once described himself, “I have no special talent, I am only passionately curious.

In a competition for mates, a well developed capacity for self-deception is an advantage, The same is true in politics and other contexts.

clean, efficient, rational, and predictable government is a competitive advantage.26

I honestly believe that in this day and age of informational ubiquity and nanosecond change, teamwork remains the one sustainable competitive advantage that has been largely untapped.

In general, if any branch of trade, or any division of labour, be advantageous to the public, the freer and more general the competition, it will always be the more so.

What made Einstein special was his impertinence, his nonconformity, and his distaste for dogma. Einstein’s genius reminds us that a society’s competitive advantage comes not from teaching the multiplication or periodic tables but from nurturing rebels. Grinds have their place, but unruly geeks change the world. (Walter Issacson, Wired)

First do what is necessary…Then do the possible…And then you will find yourself doing the impossible.

The main benefit of innovation for your organization is not competitive advantage. It is survival.

The ability to learn faster than your competitors may be the only sustainable competitive advantage. —Arie de Geus

It’s through diverse opinions and perspectives that a dynamic organisation can drive innovation and create its competitive advantage.

Develop your leaders into a competitive advantage. Reconnect your leader-power to success.

The function of advertising is simply to promote and sustain competitive advantage for brands.

Your biggest competitive advantage is that you don’t want to fuck me.

When you can't win by being better, you can win by being different. By combining your skills, you reduce the level of competition, which makes it easier to stand out. You can shortcut the need for a genetic advantage (or for years of practice) by rewriting the rules. A good player works hard to win the game everyone else is playing. A great player creates a new game that favors their strengths and avoids their weaknesses.

Critical comments by students should be taken in a friendly spirit,” he said. “Accumulation of material should not stifle the student’s independence.” A society’s competitive advantage will come not from how well its schools teach the multiplication and periodic tables, but from how well they stimulate imagination and creativity.

Tony Wagner recently said, “There’s no competitive advantage today in knowing more than the person next to you. The world doesn’t care what you know. What the world cares about is what you can do with what you know.” And,

Memory can be dramatically disrupted if you force something that’s implicit into explicit channels. Here’s an example that will finally make reading this book worth your while—how to make neurobiology work to your competitive advantage at sports. You’re playing tennis against someone who is beating the pants off of you. Wait until your adversary has pulled off some amazing backhand, then offer a warm smile and say, “You are a fabulous tennis player. I mean it; you’re terrific. Look at that shot you just made. How did you do that? When you do a backhand like that, do you hold your thumb this way or that, and what about your other fingers? And how about your butt, do you scrunch up the left side of it and put your weight on your right toes, or the other way around?” Do it right, and the next time that shot is called for, your opponent/victim will make the mistake of thinking about it explicitly, and the stroke won’t be anywhere near as effective. As Yogi Berra once said, “You can’t think and hit at the same time.

The fact of the matter is that people who have a strong desire to win, to be the best at what they do, are more likely to reach their full potential than someone who says, “I don’t care if I win or lose, I just want to get better.

The idea is that businesses that are plugged into the Mayflower-Plymouth ecosystem should have competitive and comparative advantages over non members in their respective markets.

If left unexecuted, even the greatest competitive strategies are not worth the paper on which they were written.

Leadership must come from all of us -- the private, public, and civil sectors.

A strategy is an internally consistent configuration of activities that distinguishes a firm from its rivals.

Insight into customers’ needs is important, but it’s not enough. The essence of strategy and competitive advantage lies in the activities, in choosing to perform activities differently or to perform different activities from those of rivals. Each of the companies we’ve just described has done just that, tailoring their value chains to their value propositions.

It’s not enough to shelve your own competitive streak. You have to try, consciously, to help others succeed. Some people feel this is like shooting themselves in the foot - why aid someone else in creating a competitive advantages? I don't look at it that way. Helping someone else look good doesn't make me look worse. In fact, it often improves my own performance, particularly in stressful situations.

The primary lesson from the monks is one of commitment. When you commit to doing something—do it! Don’t make excuses. Don’t renegotiate. Just do what you said you would do—as if your life depended on it.

To get your prospects and clients to see you or your business as offering them a superior benefit or advantage that no other competitor offers them is the essence of a unique selling proposition (USP). You

Monogamous marriage changes men psychologically, even hormonally, and has downstream effects on societies. Although this form of marriage is neither “natural” nor “normal” for human societies—and runs directly counter to the strong inclinations of high-status or elite men—it nevertheless can give religious groups and societies an advantage in intergroup competition. By suppressing male-male competition and altering family structure, monogamous marriage shifts men’s psychology in ways that tend to reduce crime, violence, and zero-sum thinking while promoting broader trust, long-term investments, and steady economic accumulation

Fear of death, which in some respects is adaptive in the evolutionary struggle for existence, is maladaptive in warfare. Those cultures that teach an afterlife of bliss for heroes — or even for those who just did what those in authority told them — might gain a competitive advantage.

Intelligent people have said again and again: "How easily men could make things much better than they are-if they only all tried togetherl". But people never do "all try together," because the principle of natural selection guarantees that self-prop systems will act mainly for their own survival and propagation in competition with other self-prop systems, and will not sacrifice competitive advantages for the achievement of philanthropic goals.

In short, strategy is choice. More specifically, strategy is an integrated set of choices that uniquely positions the firm in its industry so as to create sustainable advantage and superior value relative to the competition.

Creating the right experiences and then integrating around them to solve a job, is critical for competitive advantage. That’s because while it may be easy for competitors to copy products, it’s difficult for them to copy experiences that are well integrated into your company’s processes. But to do all this well takes a holistic

But fundamentally, this is about the imbalance of power between the sexes. As long as women’s primary access to power is via access to men, and as long as men value women primarily as either carriers of their bloodline or vessels for their carnal desires, both men and women will be commenting on women’s youth and beauty—or the lack thereof—ad nauseum, the former group as they would appraise any other interchangeable commodity, and the latter as assessment of competitive advantages and disadvantages. “Certainly it’s admirable for any given woman to learn to appreciate her own worth, despite all the countervailing forces. But it cannot be enough for those who are treated as lesser to feel better about themselves. That they are treated as lesser is an injustice. And that injustice itself must be rooted out and eradicated.

Mission and vision statements are elements of strategy, but they aren’t enough. They offer no guide to productive action and no explicit road map to the desired future. They don’t include choices about what businesses to be in and not to be in. There’s no focus on sustainable competitive advantage or the building blocks of value creation.

Charlie’s Almanack, Influence, and Man’s Search for Meaning, among others The habit of listening to single songs on repeat for focus (page 507) Nearly everyone has done some form of “spec” work (completing projects on their own time and dime, then submitting them to prospective buyers) The belief that “failure is not durable” (see Robert Rodriguez, page 628) or variants thereof Almost every guest has been able to take obvious “weaknesses” and turn them into huge competitive advantages (see Arnold Schwarzenegger, page 176)

It’s gotten to where an entire nation can be energized by the force of a single idea put out into the world in a passionate way through social media—at little or no cost.

Inaction is no longer acceptable.

Careers increasingly come with a reboot button, and companies that realize this early possess a competitive talent advantage

Observing without evaluating is the highest form of human intelligence. (J. Krishnamurti)

The hazards of imitative competition may partially explain why individuals with an Asperger’s-like social ineptitude seem to be at an advantage in Silicon Valley today. If you’re less sensitive to social cues, you’re less likely to do the same things as everyone else around you.

The predisposition to religious belief is an ineradicable part of human behavior. Mankind has produced 100,000 religions. It is an illusion to think that scientific humanism and learning will dispel religious belief. Men would rather believe than know... A kind of Darwinistic survival of the fittest has occurred with religions... The ecological principle called Gause's law holds that competition is maximal between species with identical needs... Even submission to secular religions such as Communism and guru cults involve willing subordination of the individual to the group. Religious practices confer biological advantage. The mechanisms of religion include (1) objectification (the reduction of reality to images and definitions that are easily understood and cannot be refuted), (2) commitment through faith (a kind of tribalism enacted through self-surrender), (3) and myth (the narratives that explain the tribe's favored position on the earth, often incorporating supernatural forces struggling for control, apocalypse, and millennium).

Intention is powerful because it addresses the question of why? Why are you getting up early to work out? Why are you staying late at work to checkup on your employees? You can have intention without a clearly defined goal and accomplish great things, but if you have a goal without intention, you’ll usually fall well short of your dreams.

I was not concerned about the dancing—I was confident that I could draw on my experience from preparing for martial arts competitions, with the supplementary advantage of an optimum intake of alcohol, which for martial arts is not permitted.

you have to accept that no matter where you work, you are not an employee—you are in a business with one employee: yourself. You are in competition with millions of similar businesses. There are millions of others all over the world, picking up the pace, capable of doing the same work that you can do and perhaps more eager to do it. Now, you may be tempted to look around your workplace and point to your fellow workers as rivals, but they are not. They are outnumbered—a thousand to one, one hundred thousand to one, a million to one—by people who work for organizations that compete with your firm. So if you want to work and continue to work, you must continually dedicate yourself to retaining your individual competitive advantage.

In today’s hypercompetitive environment enabled by technology, ownership of infrastructure no longer provides a defensible advantage. Instead, flexibility provides the crucial competitive edge, competition is perpetual motion, and advantage is evanescent.

Early entry is appropriate when the following general circumstances hold:   Image and reputation of the firm are important to the buyer, and the firm can develop an enhanced reputation by being a pioneer. Early entry can initiate the learning process in a business in which the learning curve is important, experience is difficult to imitate, and it will not be nullified by successive technological generations. Customer loyalty will be great, so that benefits will accrue to the firm that sells to the customer first. Absolute cost advantages can be gained by early commitment to supplies of raw materials, distribution channels, and so on.

When we create a Plan B, it’s not as much a safety net as it is a noose. It’s a great way to sabotage yourself. Anyone with a Plan B is not totally committed to the Plan A. They are hedging their bets. People with a Plan B are planning to fail—they just don’t know it yet. Kill Plan B or it will kill you.

When thinking about capabilities, you may be tempted to simply ask what you are really good at and attempt to build a strategy from there. The danger of doing so is that the things you’re currently good at may actually be irrelevant to consumers and in no way confer a competitive advantage. Rather than starting with capabilities and looking for ways to win with those capabilities, you need to start with setting aspirations and determining where to play and how to win. Then, you can consider capabilities in light of those choices. Only in this way can you see what you should start doing, keep doing, and stop doing in order to win.

Historically one of the main defects of constitutional government has been the failure to insure the fair value of political liberty. The necessary corrective steps have not been taken, indeed, they never seem to have been seriously entertained. Disparities in the distribution of property and wealth that far exceed what is compatible with political equality have generally been tolerated by the legal system. Public resources have not been devoted to maintaining the institutions required for the fair value of political liberty. Essentially the fault lies in the fact that the democratic political process is at best regulated rivalry; it does not even in theory have the desirable properties that price theory ascribes to truly competitive markets. Moreover, the effects of injustices in the political system are much more grave and long lasting than market imperfections. Political power rapidly accumulates and becomes unequal; and making use of the coercive apparatus of the state and its law, those who gain the advantage can often assure themselves of a favored position. Thus inequities in the economic and social system may soon undermine whatever political equality might have existed under fortunate historical conditions. Universal suffrage is an insufficient counterpoise; for when parties and elections are financed not by public funds but by private contributions, the political forum is so constrained by the wishes of the dominant interests that the basic measures needed to establish just constitutional rule are seldom properly presented. These questions, however, belong to political sociology. 116 I mention them here as a way of emphasizing that our discussion is part of the theory of justice and must not be mistaken for a theory of the political system. We are in the way of describing an ideal arrangement, comparison with which defines a standard for judging actual institutions, and indicates what must be maintained to justify departures from it.

You want to choose a path that puts the odds of winning in your favor; in poker, it’s called game selection. What determines if you win in any game (or business) isn’t how good you are; it’s how good you are relative to your competition. That’s why it’s so important to know your own strengths and weaknesses and find a market in which you have an inherent advantage.

Want to know who I am? Your responses indicate that you have a normal desire to share yourself with others. However, this need is not being adequately fulfilled at present. As a result, you unconsciously attempt to treat this emptiness with momentary interests and temporary passions. If left unaddressed, this imbalance leads to impulsive behavior and unnecessary risks. Past betrayals have left you generally suspicious of others’ behavior, particularly regarding romantic relationships. You fear you may be exploited if you open yourself too fully. Consequently, you often seek some proof of a new friend’s or lover’s sincerity before you decide to trust them. Further complicating your relationships is the anxiety you have about your unfulfilled personal and professional goals. You fear that you’ve made decisions that weren’t in your own best interest, or failed to take advantage of opportunities when they presented themselves. The desire to overcome these challenges sometimes lead you to seem pushy or even arrogant. Because this competitive urge is not always apparent to others, they are often surprised by it. However, the passion that underlies your desire for success is unique. This makes you unlike others. You cannot simply accept what life has to offer; you aspire for more. Between each inhale and exhale we die and are reborn.

Oh, what do you know?" LaMont spat. "You're just an ivory-tower philosopher geek. I live in the real world. The fuck-or-be-fucked world." Stabbing his finger at the two men, he said, "If you're not taking advantage of someone then someone is taking advantage of you, or at the very least you've not maximized efficiency. The world needs people like me, otherwise there would be no competition.

A design-type strategy is an adroit configuration of resources and actions that yields an advantage in a challenging situation. Given a set bundle of resources, the greater the competitive challenge, the greater the need for the clever, tight integration of resources and actions. Given a set level of challenge, higher-quality resources lessen the need for the tight integration of resources and actions. These

When an individual is cooperative and altruistic, this reduces his advantage in competition to a comparable degree with other members but increases the survival and reproduction rate of the group as a whole. In a nutshell, individual selection favors what we call sin and group selection favors virtue. The result is the internal conflict of conscience that afflicts all but psychopaths, estimated fortunately to make up only 1 to 4 percent of the population.

I am willing to contribute for a grand tombstone for Political Correctness (PC). This mouthplug has made us cowards, afraid to exercise our freedom of expression. It has stifled frank exchange of ideas and has made debates one-sided and pre-concluded. It has given strength to ideas which cannot defend themselves in an open debate. PC may be acceptable in private space but it is diastrous in public space as it makes that public space an oxymoron by making it restricted to only the "acceptable". Democracy is about competitive ideas and PC is undemocratic as it discounts the possibility of a level playing field. All growth of ideas is through cross fertilisation and PC leads to degeneration of ideas by restricting the process to inbreeding. Only those who use weakness as leverage to gain advantage without effort or have an hidden agenda will root for PC. It is the tool of the lazy and the devious. My offer for its tombstone stands.

But in capitalist reality as distinguished from its textbook picture, it is not that kind of competition which counts but the competition from the new commodity, the new technology, the new source of supply, the new type of organization (the largest-scale unit of control for instance)—competition which commands a decisive cost or quality advantage and which strikes not at the margins of the profits and the outputs of the existing firms but at their foundations and their very lives.

Evolution is an inherently competitive process: The faster lion catches more prey than other lions, produces more offspring than other lions, and thus raises the proportion of fast lions in the next generation. This couldn’t happen if there were no competition for resources. If lion food existed in unlimited supply, the faster lions would have no advantage over the slower ones, and the next generation of lions would be, on average, no faster than the last generation. No competition, no evolution by natural selection.

For here was the hole in Alma’s theory: she could not, for the life of her, understand the evolutionary advantages of altruism and self-sacrifice. If the natural world was indeed the sphere of amoral and constant struggle for survival that it appeared to be, and if outcompeting one’s rivals was the key to dominance, adaptation, and endurance—then what was one supposed to make, for instance, of someone like her sister Prudence? Whenever Alma mentioned her sister’s name, with respect to her theory of competitive alteration, her uncle groaned.

All popular political doctrines charge your brain with various liberal ideas, such as respect for human rights and freedom, toleration, gender equality and so and so forth. However, in the political arena, a candidate with a charismatic personality in the eyes of the masses, has a great advantage over his opponents in political competition. If you want to become a likely winner, cultivate your charisma, make people believe in you and share your opinion, with no regard to what it is. Your victory depends more on your charisma than on the ideas that you follow.

To prohibit the use of certain poisonous substances or to require special precautions in their use, to limit working hours or to require certain sanitary arrangements, is fully compatible with the preservation of competition. The only question here is whether in the particular instance the advantages gained are greater than the social costs which they impose. Nor is the preservation of competition incompatible with an extensive system of social services—so long as the organization of these services is not designed in such a way as to make competition ineffective over wide fields.

rapacious. To look for a continuation of harmony between a number of independent, unconnected sovereignties in the same neighborhood, would be to disregard the uniform course of human events, and to set at defiance the accumulated experience of ages. The causes of hostility among nations are innumerable. There are some which have a general and almost constant operation upon the collective bodies of society. Of this description are the love of power or the desire of pre-eminence and dominion—the jealousy of power, or the desire of equality and safety. There are others which have a more circumscribed though an equally operative influence within their spheres. Such are the rivalships and competitions of commerce between commercial nations. And there are others, not less numerous than either of the former, which take their origin entirely in private passions; in the attachments, enmities, interests, hopes, and fears of leading individuals in the communities of which they are members. Men of this class, whether the favorites of a king or of a people, have in too many instances abused the confidence they possessed; and assuming the pretext of some public motive, have not scrupled to sacrifice the national tranquillity to personal advantage or personal gratification.

To make good choices, you need to make sense of the complexity of your environment. The strategy logic flow can point you to the key areas of analysis necessary to generate sustainable competitive advantage. First, look to understand the industry in which you play (or will play), its distinct segments and their relative attractiveness. Without this step, it is all too easy to assume that your map of the world is the only possible map, that the world is unchanging, and that no better possibilities exist. Next, turn to customers. What do channel and end consumers truly want, need, and value-and how do those needs fit with your current or potential offerings? To answer this question, you will have to dig deep-engaging in joint value creation with channel partners and seeking a new understanding of end consumers. After customers, the lens turns inward: what are your capabilities and costs relative to the competition? Can you be a differentiator or a cost leader? If not, you will need to rethink your choices. Finally, consider competition; what will your competitors do in the face of your actions? Throughout the thinking process, be open to recasting previous analyses in light of what you learn in a subsequent box. The basic direction of the process is from left to right, but it also has interdependencies that require a more flexible path through it.

Toyota wasn’t really worried that it would give away its “secret sauce.” Toyota’s competitive advantage rested firmly in its proprietary, complex, and often unspoken processes. In hindsight, Ernie Schaefer, a longtime GM manager who toured the Toyota plant, told NPR’s This American Life that he realized that there were no special secrets to see on the manufacturing floors. “You know, they never prohibited us from walking through the plant, understanding, even asking questions of some of their key people,” Schaefer said. “I’ve often puzzled over that, why they did that. And I think they recognized we were asking the wrong questions. We didn’t understand this bigger picture.” It’s no surprise, really. Processes are often hard to see—they’re a combination of both formal, defined, and documented steps and expectations and informal, habitual routines or ways of working that have evolved over time. But they matter profoundly. As MIT’s Edgar Schein has explored and discussed, processes are a critical part of the unspoken culture of an organization. 1 They enforce “this is what matters most to us.” Processes are intangible; they belong to the company. They emerge from hundreds and hundreds of small decisions about how to solve a problem. They’re critical to strategy, but they also can’t easily be copied. Pixar Animation Studios, too, has openly shared its creative process with the world. Pixar’s longtime president Ed Catmull has literally written the book on how the digital film company fosters collective creativity2—there are fixed processes about how a movie idea is generated, critiqued, improved, and perfected. Yet Pixar’s competitors have yet to equal Pixar’s successes. Like Toyota, Southern New Hampshire University has been open with would-be competitors, regularly offering tours and visits to other educational institutions. As President Paul LeBlanc sees it, competition is always possible from well-financed organizations with more powerful brand recognition. But those assets alone aren’t enough to give them a leg up. SNHU has taken years to craft and integrate the right experiences and processes for its students and they would be exceedingly difficult for a would-be competitor to copy. SNHU did not invent all its tactics for recruiting and serving its online students. It borrowed from some of the best practices of the for-profit educational sector. But what it’s done with laser focus is to ensure that all its processes—hundreds and hundreds of individual “this is how we do it” processes—focus specifically on how to best respond to the job students are hiring it for. “We think we have advantages by ‘owning’ these processes internally,” LeBlanc says, “and some of that is tied to our culture and passion for students.

Delegating, thinking strategically, communicating—you may think this all sounds like Management 101. And you’re right. The most basic elements of management are often what trip up managers early in their careers. And because they are the basics, the bosses of rookie managers often take them for granted. They shouldn’t—an extraordinary number of people fail to develop these skills. I’ve maintained an illusion throughout this article—that only rookie managers suffer because they haven’t mastered these core skills. But the truth is, managers at all levels make these mistakes. An organization that supports its new managers by helping them to develop these skills will have surprising advantages over the competition.

Strategy can seem mystical and mysterious. It isn't. It is easily defined. It is a set of choices about winning. Again, it is an integrated set of choices that uniquely positions the firm in its industry so as to create sustainable advantage and superior value relative to the competition. Specifically, strategy is the answer to these five interrelated questions: 1. What is your winning aspiration? The purpose of your enterprise, its motivating aspiration. 2. Where will you play? A playing field where you can achieve that aspiration. 3. How will you win? The way you will win on the chosen playing field. 4. What capabilities must be in place? The set and configuration of capabilities required to win in the chosen way. 5. What management systems are required? The systems and measures that enable the capabilities and support the choices. These choices and the relationship between them can be understood as a reinforcing cascade, with the choices at the top of the cascade setting the context for the choices below, and choices at the bottom influencing and refining the choices above.

Mass production was aimed at new sources of demand in the early twentieth century’s first mass consumers. Ford was clear on this point: “Mass production begins in the perception of a public need.”73 Supply and demand were linked effects of the new “conditions of existence” that defined the lives of my great-grandparents Sophie and Max and other travelers in the first modernity. Ford’s invention deepened the reciprocities between capitalism and these populations. In contrast, Google’s inventions destroyed the reciprocities of its original social contract with users. The role of the behavioral value reinvestment cycle that had once aligned Google with its users changed dramatically. Instead of deepening the unity of supply and demand with its populations, Google chose to reinvent its business around the burgeoning demand of advertisers eager to squeeze and scrape online behavior by any available means in the competition for market advantage. In the new operation, users were no longer ends in themselves but rather became the means to others’ ends. Reinvestment in user services became the method for attracting behavioral surplus, and users became the unwitting suppliers of raw material for a larger cycle of revenue generation.

PEACETIME CEO/WARTIME CEO Peacetime CEO knows that proper protocol leads to winning. Wartime CEO violates protocol in order to win. Peacetime CEO focuses on the big picture and empowers her people to make detailed decisions. Wartime CEO cares about a speck of dust on a gnat’s ass if it interferes with the prime directive. Peacetime CEO builds scalable, high-volume recruiting machines. Wartime CEO does that, but also builds HR organizations that can execute layoffs. Peacetime CEO spends time defining the culture. Wartime CEO lets the war define the culture. Peacetime CEO always has a contingency plan. Wartime CEO knows that sometimes you gotta roll a hard six. Peacetime CEO knows what to do with a big advantage. Wartime CEO is paranoid. Peacetime CEO strives not to use profanity. Wartime CEO sometimes uses profanity purposefully. Peacetime CEO thinks of the competition as other ships in a big ocean that may never engage. Wartime CEO thinks the competition is sneaking into her house and trying to kidnap her children. Peacetime CEO aims to expand the market. Wartime CEO aims to win the market. Peacetime CEO strives to tolerate deviations from the plan when coupled with effort and creativity. Wartime CEO is completely intolerant. Peacetime CEO does not raise her voice. Wartime CEO rarely speaks in a normal tone. Peacetime CEO works to minimize conflict. Wartime CEO heightens the contradictions. Peacetime CEO strives for broad-based buy-in. Wartime CEO neither indulges consensus building nor tolerates disagreements. Peacetime CEO sets big, hairy, audacious goals. Wartime CEO is too busy fighting the enemy to read management books written by consultants who have never managed a fruit stand. Peacetime CEO trains her employees to ensure satisfaction and career development. Wartime CEO trains her employees so they don’t get their asses shot off in the battle. Peacetime CEO has rules like “We’re going to exit all businesses where we’re not number one or two.” Wartime CEO often has no businesses that are number one or two and therefore does not have the luxury of following that rule.

The “German problem” after 1970 became how to keep up with the Germans in terms of efficiency and productivity. One way, as above, was to serially devalue, but that was beginning to hurt. The other way was to tie your currency to the deutsche mark and thereby make your price and inflation rate the same as the Germans, which it turned out would also hurt, but in a different way. The problem with keeping up with the Germans is that German industrial exports have the lowest price elasticities in the world. In plain English, Germany makes really great stuff that everyone wants and will pay more for in comparison to all the alternatives. So when you tie your currency to the deutsche mark, you are making a one-way bet that your industry can be as competitive as the Germans in terms of quality and price. That would be difficult enough if the deutsche mark hadn’t been undervalued for most of the postwar period and both German labor costs and inflation rates were lower than average, but unfortunately for everyone else, they were. That gave the German economy the advantage in producing less-than-great stuff too, thereby undercutting competitors in products lower down, as well as higher up the value-added chain. Add to this contemporary German wages, which have seen real declines over the 2000s, and you have an economy that is extremely hard to keep up with. On the other side of this one-way bet were the financial markets. They looked at less dynamic economies, such as the United Kingdom and Italy, that were tying themselves to the deutsche mark and saw a way to make money. The only way to maintain a currency peg is to either defend it with foreign exchange reserves or deflate your wages and prices to accommodate it. To defend a peg you need lots of foreign currency so that when your currency loses value (as it will if you are trying to keep up with the Germans), you can sell your foreign currency reserves and buy back your own currency to maintain the desired rate. But if the markets can figure out how much foreign currency you have in reserve, they can bet against you, force a devaluation of your currency, and pocket the difference between the peg and the new market value in a short sale. George Soros (and a lot of other hedge funds) famously did this to the European Exchange Rate Mechanism in 1992, blowing the United Kingdom and Italy out of the system. Soros could do this because he knew that there was no way the United Kingdom or Italy could be as competitive as Germany without serious price deflation to increase cost competitiveness, and that there would be only so much deflation and unemployment these countries could take before they either ran out of foreign exchange reserves or lost the next election. Indeed, the European Exchange Rate Mechanism was sometimes referred to as the European “Eternal Recession Mechanism,” such was its deflationary impact. In short, attempts to maintain an anti-inflationary currency peg fail because they are not credible on the following point: you cannot run a gold standard (where the only way to adjust is through internal deflation) in a democracy.

THREE COMMUNICATION LESSONS FROM THE MOST FASCINATING BRANDS       1.   Don’t focus on how you are similar to others, but how you are different. Leading brands stand out by sharpening their points of difference. The more clearly and distinctly a brand can pinpoint its differences, the more valuable it becomes. If a brand can carve out a very clear spot in people’s minds, the product or service ceases to be a commodity. As we’ll see in Part II, different personality Advantages can be more valuable than similar ones. 2.   Your differences can be very small and simple. The reality is, most products are virtually indistinguishable from their competitors. Yet a leading brand can build a strong competitive edge around very minor differences. Similarly, you don’t need to be dramatically different than everyone else—your difference can be minute, as long as it is clearly defined. The more competitive the market, the more crucial this becomes. 3.   Once you “own” a difference, you can charge more money. People pay more for products and people who add distinct value in some way. And just as customers pay more for fascinating brands, employers pay higher salaries for employees who stand out with a specific benefit. If you are an entrepreneur or small business owner, your clients and customers will have a higher perceived value of your time and services if they can clearly understand why you are different than your competitors. The more crowded the environment, the more crucial these lessons become.

This is not necessarily true, however, of measures merely restricting the allowed methods of production, so long as these restrictions affect all potential producers equally and are not used as an indirect way of controlling prices and quantities. Though all such controls of the methods of production impose extra costs (i.e., make it necessary to use more resources to produce a given output), they may be well worth while. To prohibit the use of certain poisonous substances or to require special precautions in their use, to limit working hours or to require certain sanitary arrangements, is fully compatible with the preservation of competition. The only question here is whether in the particular instance the advantages gained are greater than the social costs which they impose. Nor is the preservation of competition incompatible with an extensive system of social services — so long as the organization of these services is not designed in such a way as to make competition ineffective over wide fields.

But it was in the life-saving competition that Stanley Judkins's conduct was most blameable and had the most far-reaching effects. The practice, as you know, was to throw a selected lower boy, of suitable dimensions, fully dressed, with his hands and feet tied together, into the deepest part of Cuckoo Weir, and to time the Scout whose turn it was to rescue him. On every occasion when he was entered for this competition Stanley Judkins was seized, at the critical moment, with a severe fit of cramp, which caused him to roll on the ground and utter alarming cries. This naturally distracted the attention of those present from the boy in the water, and had it not been for the presence of Arthur Wilcox the death-roll would have been a heavy one. As it was, the Lower Master found it necessary to take a firm line and say that the competition must be discontinued. It was in vain that Mr. Beasley Robinson represented to him that in five competitions only four lower boys had actually succumbed. The Lower Master said that he would be the last to interfere in any way with the work of the Scouts; but that three of these boys had been valued members of his choir, and both he and Dr. Ley felt that the inconvenience caused by the losses outweighed the advantages of the competitions. Besides, the correspondence with the parents of these boys had become annoying, and even distressing: they were no longer satisfied with the printed form which he was in the habit of sending out, and more than one of them had actually visited Eton and taken up much of his valuable time with complaints. So the life-saving competition is now a thing of the past.

During the boisterous years of my youth nothing used to damp my wild spirits so much as to think that I was born at a time when the world had manifestly decided not to erect any more temples of fame except in honour of business people and State officials. The tempest of historical achievements seemed to have permanently subsided, so much so that the future appeared to be irrevocably delivered over to what was called peaceful competition between the nations. This simply meant a system of mutual exploitation by fraudulent means, the principle of resorting to the use of force in self-defence being formally excluded. Individual countries increasingly assumed the appearance of commercial undertakings, grabbing territory and clients and concessions from each other under any and every kind of pretext. And it was all staged to an accompaniment of loud but innocuous shouting. This trend of affairs seemed destined to develop steadily and permanently. Having the support of public approbation, it seemed bound eventually to transform the world into a mammoth department store. In the vestibule of this emporium there would be rows of monumental busts which would confer immortality on those profiteers who had proved themselves the shrewdest at their trade and those administrative officials who had shown themselves the most innocuous. The salesmen could be represented by the English and the administrative functionaries by the Germans; whereas the Jews would be sacrificed to the unprofitable calling of proprietorship, for they are constantly avowing that they make no profits and are always being called upon to 'pay out'. Moreover they have the advantage of being versed in the foreign languages. Why could I not have been born a hundred years ago? I used to ask myself. Somewhere about the time of the Wars of Liberation, when a man was still of some value even though he had no 'business'. Thus I used to think it an ill-deserved stroke of bad luck that I had arrived too late on this terrestrial globe, and I felt chagrined at the idea that my life would have to run its course along peaceful and orderly lines. As a boy I was anything but a pacifist and all attempts to make me so turned out futile.