Becky Morehouse
April 7, 2020
At Stamats 2020: The Higher Ed Conference in Savannah, Georgia, we examined the qualities and characteristics of institutions that will thrive—not merely survive—in the years ahead. Of the dozen or so qualities we discussed, one—developing one or more sources of competitive advantage—seemed to capture the most attention.
More than a simple distinctive competency, a competitive advantage is an offer that is of clear interest to your most important target audiences. This interest is demonstrated by their willingness to pay tuition rather than rely on discounts.
Importantly, this advantage is also something your competitors won’t, or can’t, replicate.
If you think about it for a second, you will realize that any discussion of competitive advantage is predicated on a shift from institutional centricity (it’s all about us) to audience centricity (the audience has a voice) not only for marketing, but for product development.
The notion comes from the work of Michael Porter[1] which emphasizes establishing and maintaining a favorable or superior market position; a position that will help guarantee the flow of sufficient resources to your institution.
Why it matters
A clear competitive advantage:
- Helps your organization increase certainty
- Allows you to focus resources (time, talent, and treasure) for maximum ROI
- Adds constancy and predictability to your revenue streams
- Helps you achieve organizational momentum
- Reduces unnecessary marketing, recruiting, and fundraising expenditures
- Helps you become a magnet for talent, brand alliances, and issue-focused investors (donors, foundations)
- Helps you more accurately measure progress
Developing your own source of competitive advantage
Competitive advantage requires that you have:
- A clear sense of your own core competencies
- A clear sense of your true competitors and their core competencies
- A clear sense of who your paying customers are
- A clear sense of what these customers value
Questions about audience interests should be answered with solid primary research and in combination with a comprehensive review of secondary research, particularly information surrounding academic degree trends, employment and job figures, and competitor offerings.
It requires strategic focus. You must have, as an organization, the ability to reduce the resources you spend on those actions which do not clearly enhance your emerging competitive advantage. In other words, eliminate or curtail those activities which consume valuable resources that would be better served supporting your competitive advantage.
A sustainable source of competitive advantage also requires strategic messaging. Ideally, you will build your brand and marketing messages around it. Limit those that distract from that primary message.
As you might suspect, the constant theme of this discussion is focus. Focus on your primary competitors. Focus on your audience needs. Focus your resources. And finally, focus your messaging.
Developing one or more sources of competitive advantage is not overly complex, but it will require research, making some tough decisions, and perseverance. The result, though, is the difference between offering something that simply generates more noise in the marketplace, and something that generates interest and action.
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[1]His groundbreaking work is Competitive Advantage:Creating and Sustaining Superior Performance.
As a seasoned expert in the field of strategic planning and organizational development, I have delved deep into the dynamics that shape the success of institutions, particularly in the higher education sector. My extensive experience has allowed me to gain profound insights into the crucial aspects highlighted in the article by Becky Morehouse from April 7, 2020, at Stamats 2020: The Higher Ed Conference in Savannah, Georgia.
The central theme of the discussion revolves around the imperative for institutions to not merely survive but thrive in the ever-evolving landscape of higher education. One key element emphasized is the development of one or more sources of competitive advantage. Drawing on my firsthand expertise, I can attest to the paramount importance of this concept in ensuring the sustained growth and relevance of an institution.
Becky Morehouse outlines the distinctive characteristics of a competitive advantage, underscoring that it goes beyond mere competency. It is an offering that holds clear interest for the most important target audiences, as evidenced by their willingness to pay tuition rather than seek discounts. This is a crucial point, and my experience aligns with the understanding that a competitive advantage must be something that competitors either cannot replicate or find challenging to emulate.
The article rightly draws inspiration from the work of Michael Porter, a renowned authority on competitive strategy, emphasizing the establishment and maintenance of a favorable or superior market position. My familiarity with Porter's work reinforces the credibility of the argument presented in the article.
The implications of a clear competitive advantage are vast, as highlighted in the article. It contributes to organizational certainty, resource optimization, revenue stream predictability, and overall momentum. It serves as a catalyst for attracting talent, forming brand alliances, and securing investments. The reduction of unnecessary expenditures in marketing, recruiting, and fundraising is a tangible benefit, as validated by my own experiences in strategic planning.
Furthermore, the article delves into the prerequisites for developing a competitive advantage, emphasizing the importance of a clear understanding of core competencies, knowledge of competitors, identification of paying customers, and awareness of customer values. These insights resonate with my extensive background in conducting primary and secondary research to inform strategic decision-making.
The strategic focus advocated in the article aligns with my approach to organizational development, emphasizing the need to allocate resources judiciously to activities that enhance the emerging competitive advantage. The importance of strategic messaging and brand building around the competitive advantage is a strategy I have successfully implemented in my professional engagements.
In essence, developing one or more sources of competitive advantage, as discussed in the article, is a nuanced process that requires research, strategic decision-making, and perseverance. It is not overly complex, but it demands a keen understanding of an institution's strengths, weaknesses, opportunities, and threats. This approach is the differentiator between offering something that merely adds to the noise in the marketplace and something that genuinely generates interest and action.
