Staying Ahead: Lessons from a Conversation on Competitive Advantage

Published on April 15, 2025 by Jinjin Lim Siong Kee

A reflection on key insights from a local digital marketing agency meeting, inspired by Harvard Business Review’s podcast on sustaining competitive advantage.

Recently, I had the opportunity to sit down with a partner from a digital marketing agency for an informal virtual coffee chat on April 4, 2025. What started as a casual conversation about industry trends evolved into a deeper reflection on how firms sustain—or lose—their competitive edge over time.

We discussed Click & Mortar’s growth story, one of its competitors, but also surfaced subtle signs that a strategy might begin to stagnate:

• Profitability shifts to adjacent industries: The surge in demand for SEO optimization and advanced analytics highlights how value creation can migrate quickly when technology evolves.

• Lower barriers to entry: Creating a website has never been easier or cheaper. As tech democratizes, the competitive moat that once protected agencies grows thinner.

• Erosion of differentiation: When a company’s unique value proposition fades—either because it’s no longer as relevant or because competitors can replicate it easily—it's a warning sign that strategic renewal is needed.

These observations reminded me of an episode from Harvard Business Review’s "The Key to Sustaining an Enduring Competitive Advantage," where Chris Zook, the former head of Bain's global strategy practice, emphasizes the importance of dynamic capabilities—the ability to adapt, learn, and reposition before the market forces you to.

More than ever, staying relevant means being proactive, not reactive.