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Types of Competitive Advantage

Strong brand
(commodity product Tiffany, USG Corp.) (differentiated product Coke, Oreo cookies)

Patents
(3M, Merck)

Regulatory Licenses
(Moodys, Apollo Group)

High switching costs


(MS Office, Oracle, Fiserv)

Sustainably lower costs


Location based (cement, aggregate companies, Posco) Unique resource deposit (Compass Minerals, Aracruz Cellulose)

Scale
Large distribution network (Stericycle, Darden Restaurants) Manufacturing scale (ExxonMobil) R&D costs (Electronic Arts, Graco)

Network economics
(C.H. Robinson, eBay)

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