How do I identify my company's core competitive advantage?

Finding your core advantage

A competitive advantage is a sustainable reason customers choose you over alternatives. It often comes from superior value, unique capabilities, or structural benefits.

Common sources of advantage:

• Proprietary technology or IP
• Strong brand and customer trust
• Exclusive partnerships or distribution
• Cost structure that allows lower prices
• Superior data, processes, or customer service

How to discover it:

1. Map what you do better than competitors across product, cost, service, and distribution.
2. Ask customers why they choose you—focus on repeatable reasons.
3. Identify resources or relationships that are hard to replicate.

Assess durability

Evaluate whether the advantage is temporary (first-mover) or durable (network effects, patents). Durable advantages are worth investing in; temporary ones require speed and continuous innovation.

Turn it into strategy

Once identified, center your messaging, hiring, investment, and partnerships around that advantage. Use it to set priorities for product features and customer segments to defend and expand your lead.