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Rita McGrath and Roger L. Martin on the Nature of Competitive Advantage

Thinkers & Ideas

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Is There a Competitive Advantage in the Modern Economy?

A competitive advantage is markably more important than it's ever been in the modern economy. The fixed cost, variable cost component of most business has really shifted so that there are many more fixed costs and fewer variable costs. If you don't get out to a lead, and if you can't invest more behind your advantage than the next company, you will lose. You will be crushed. So we are in a world now where any hesitation about seeking advantage, making the bets necessary to seek advantage, is extremely dangerous to your health. And i think those have all become very dynamic.

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