Creating a Competitive Advantage

Competitive advantages can rapidly change, whether due to technology, economics, or actions by competing companies. Porter discusses three generic strategies to help a company achieve a competitive advantage. These consist of overall cost leadership, differentiation, and focus. I find it important to understand how to sustain competitive advantage, especially if you are the leader in it.

Disney primarily focuses on differentiation to sustain competitive advantage. They have created such a significant global presence with unique products and services it is hard to compete. While other competitors of Disney, such as Universal, are intense rivals, the experiences are vastly different. For example, Disney markets itself as grown up, never growing up, whereas Universal is more for adults. Disney has also been able to perfect their brand image. This ranges from theme parks to actors who must maintain a particular image when attached to the Disney brand. Having an overall holistic image has made Disney stand out in a world becoming increasingly over-saturated with adult content.