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In pursuit of 'Edge'
Credo is very interested in “Edge”. We have been developing the concept and working with clients for the last three years on this topic.
By Stephanie Aldridge
Edition: Services: something for everyone.

We were delighted to see the table below printed in a national newspaper, in which airlines were measured against a number of factors. It’s a great example of Edge.

The practice of competitive advantage has gone soft.
So, what do we mean by Edge? For us, Edge is a very literal and focused interpretation of competitive advantage. It means having an advantage over the competition in one or two key areas, and aggressively exploiting that advantage. In practical terms, this requires making real trade-offs and mobilising resources to improve on the areas where you have Edge, at the cost of other areas.

Why is this different to prevailing views on competitive advantage? Well, we believe the theory and practice of competitive advantage has gone soft. Too often now it involves averaging to the mean, matching competitor advantages and playing to all customer needs.

As practised, differentiation is often pretty bland, whereas Edge is hard, distinctive, and focused.

Competitive advantage is often focused on improving the things companies are weak at. In contrast Edge focuses on pushing existing advantages to the next level, making clear ground on the things you are good at, and reinforcing that in the market. Edge forces you and your customers to make clear choices.

The airline table says a lot about Edge. Ryanair scores full marks on price and zero on all the other factors. Management commentary and action reflects this focus. Aside from the pre-requisite of providing a safe service, they are entirely focused on making their operation the lowest cost and lowest price. Nothing is sacred, including service. For example, they don’t skimp on the budget for in-flight magazines – Ryanair simply doesn’t have any.

Edge - main points:

  • One focus, not many
  • Clear lead, not slight
  • Trade-off other factors
  • Embed in operations

And the others? British Airways and British Midland have an indistinct position. Easyjet and Virgin are better.

Overall, this is an industry with interesting strategies and well crafted, differentiated offers. Can all industries say as much?

Stephanie Aldridge is a Manager at Credo.
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