Generic building blocks of sustainable competitive advantage. Coca Cola, Walmart etc.

1. Tirthankar Sutradhar
Generic Building Blocks of Sustainable
Competitive Advantage

2. When two or more firms compete within the same
market, one firm possesses a competitive advantage over
its rivals when it earns (or has the potential to earn) a
persistently higher rate of profits

3. Pruning the portfolio
• Dell became really successful by exploring the web as a distribution channel.
• Gillette has made a fortune by establishing a continuous relationship with
customers based on its disposable razors.
• Apple resurged based on its core capacity of bringing design to computers and
electronic gadgets.
• Cisco became famous for its capacity of configuring activities in new and
innovative supply chains.
• Intel thrived for its capacity to get partners to build on its processing platform.
• Google tapped in an innovative revenue streams by linking highly specific search
results and content with text ads.
• Wal-Mart became dominant by its ability to slash cost throughout its business
model.

4. Evolution of Competitive Advantage

5. Emergence of Competitive Advantage

6. 4 Building Blocks of Competitive Advantage

7. The Main Types of Competitive Advantage
Cost advantage
Differentiation advantage
Competitive
advantage

8. Once establishes, competitive advantage is eroded by
competition. The speed with which competitive advantage is
undermined depends on the ability of competitors to
challenge either by imitation or innovation

9. Sustainable Competitive Advantage
What is meant by sustainable competitive
advantage?
• Durable
• Valuable to the firm
• Exploiting weaknesses and neutralizing threats
• Unique
• Difficult for competitors to imitate
• Not easily substitutable

10. Sustaining Competitive Advantage
Sustained competitive advantage comes from maintaining higher profits than competitors over long
periods of time.

11. The Coca-Cola Business Model
• Coca Cola is the best example of a company with sustained competitive
advantage, innovation, an extensive business model and an intelligent and
substantial distribution network.
• The Coca-Cola Company was incorporated in 1892 to produce the sweet fizzy
drink – first developed by a pharmacist – that has become the world’s most
recognised brand.
• Today, almost 120 years later, The Coca-Cola Company is still going strong and is
one of the most sought-after stocks on the New York Stock Exchange.
• Coca-Cola’s competitive advantage has proven its sustainability over the last 100
years.

12. Competitive Advantage of Coca-Cola
• The secret recipe for Coca-Cola, which arguably tastes better than other cola
drinks.
• Their ability to continue developing new products and re-inventing old ones –
Coca-Cola currently offers over 400 brands in 200 markets worldwide.
• The world’s most comprehensive distribution system has made Coca-Cola
accessible to billions of people worldwide. Coca-Cola is often available in ample
supply to people in areas where other consumer goods companies would never
consider delivering their products. The African continent is an excellent example
– it’s fairly common to see a small shop selling cold Coke in the middle of
nowhere.
• Coca-Cola’s production techniques are so well developed that it costs a fraction of
the selling price to manufacture their product, resulting in high profit margins.

14. Bottling

15. 1886
Coca Cola
BORN
1891
Coca Cola’s first
BOTTLINGIn a drug store occurred

16. 1899
The first bottling
was done
AGREEMENT
1909
400 Coca-Cola plants
were operating
BOTTLING

17. 1930
The company started moving
GLOBALY
1960
New
BRANDS
were Introduced

18. And the rest is History

19. Coca-Cola was made for the cure of
headache
and other illnesses

20. Sales for the first year were only
$50

21. Only 9
servings of the soft drink were sold
each day

22. Now number of coke bottles sold each day
1.8 billion

23. is the
Coca-Cola
most recognized word in
Okay
the world after

24. 162 B 115 B
In 2012
Enterprise Value
In 2012
Total GDP

25. Total number of Coca-Cola Products
3,500

26. Number of worldwide Coke employees
150,900

27. Pruning the portfolio
Performance
Distribution
Network
Another well-known example of a company with a sustainable competitive advantage is Walmart

28. Competitive Advantage of
Walmart maintains a sustainable
competitive advantage in part because its
strategies are specific to its organization
and these strategies are known for
creating a gap between Walmart's
performance and that of its competitors.
Walmart has created a complicated and
detailed distribution center network which
allows it to move goods to stores more
quickly and efficiently than its competitors,
while maintaining prices lower than its
competitors.

29. Pruning the portfolio

30. THANK YOU