Tuesday, December 5, 2006

Competitive Advantage

When writing a business plan, you need to be able to describe your competitive advantage. Why are you going to beat out the competition? How will you defend your business as others enter? Pundits used to say that being "first to market" was the best way to do this. But time and again, this maxim has not proven out. YouTube, Microsoft, Google and Starbucks were not "first to market" in their respective categories. But they all had qualities or practices that made their products or services the ones that most people wanted to use. Think about it. Visit their Web sites, read their information. Figure out what makes them great.

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