Competitive Strategy: how to make the right choices

Strategy is the choices that you make in your business which mostly are going to determine whether you will succeed or fail.

It’s usually a handful of choices that largely dictate the other choices that you make and which you can’t change very easily. 

That’s what strategy is.

The choices are integrated choices. In other words, what makes a great company, a great successful strategy is not a bunch of functional choices. It’s how do these functional choices fit together to create a holism that is attractive to customers but also other competitors can’t copy very well, so the customers keep buying from you and not your competitors. 

📌 Competitive strategy is how you think about what choices to make by understanding not just you but understanding your competitors.

📌 Competitive advantage is the idea that says: “Hey, look..are there choices that if I make them…”

It’s not just if I make a choice and the other guy makes another choice, then I have to make a choice then he has to make a choice. 

Competitive advantage: Is there some kind of choices I can make, that if I make those, my competitors are stuck.
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I’m better of than he is even if he chose to imitate my choice.

So strategy is what are those choices that dictate my outcome.

How do you make these choices?

You make them so that you attract customers and the customers can’t get pulled away by others and the best way to do that is to find the kind of moves if you make them, your competitors either can’t make them or it doesn’t help them as much as they do. 

So Strategy -> Competitive strategy -> Competitive advantage is the most powerful form of Competitive strategy. 


  • You can be extremely competitive at something, but if there is no economic value attached to it, there is no comparative advantage. 

  • Just because you are very competitive at something, doesn’t mean you should do it because it doesn’t bring you an economic value. This is the concept of comparative advantage.

  • Competitive advantage is not a one thing you do, it’s a way you organize your life, your business.

  • Comparative advantage is the thing that earns you the most financial return even if you’re not the best at it. 

If you have any questions about this topic or need help, leave a comment below with your question and I’ll answer it. If you liked the post, I would appreciate that as well, share with friends.

Thank you for reading!