The Four Gears of Competitive Advantage
In the article, The Strategy Accelerator, Alfred Griffioen shares four gears for differentiation and competitive advantage:
- First gear - No unique product and low customer relevance.
- Second gear - High customer relevance but no unique product.
- Third gear - A unique product but low customer relevance.
- Fourth gear - High customer relevance and a unique product.
Strategies for Each Gear
Griffioen shares strategies for each of the gears, to make the most of your market position:
Scenario | Solution |
First gear - No unique product and low customer relevance. | Ally with others as the quickest way to build competence or product portfolio. |
Second gear - High customer relevance but no unique product | Combine several matching products under your brand and become even more relevant for your customers. |
Third gear - A unique product but low customer relevance. | Excel in what you do to make sure that you can continue to develop. |
Fourth gear - High customer relevance and a unique product. | Consolidate your position by constant renewal and by keeping close watch on your competitors. |
I think it’s useful for evaluating, and is complementary to existing competitive models.