Skip to main content
Lesson 84 A1bC3cC5cH2b

Competitive advantage

You'll learn how innovation creates competitive advantage and explore three key strategies: being a first mover to establish market leadership, leveraging disruptive innovation to challenge incumbents, and adopting a late mover approach to learn from others' mistakes.

This lesson is part of a paid course

Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.

Already bought? Sign in

Ask the AI tutor anything about this lesson

It knows every lesson in the course — explanations, clarifications, practice questions.

Summarise lesson Key concepts Practice questions

In this lesson

  1. 0:00 Disruptive technology and competitive advantage
  2. 1:06 Innovation as source of competitive advantage
  3. 2:38 First mover advantage explained
  4. 4:52 Business model innovation strategies
  5. 6:08 Disruptive innovation in practice
  6. 7:29 Late mover advantages and benefits
  7. 9:37 EV market entry case study

About this lesson

This lesson covers the Strategic Business Leader syllabus and uses real-world examples—from Apple's brand strength to the UK supermarket disruption by Aldi and Lidl—to show how organisations can differentiate themselves, build customer loyalty, and create barriers to entry. You'll discover the practical trade-offs between entering markets early versus waiting, with a detailed case study on electric vehicles that illustrates when each strategy works best. By understanding these competitive advantage mechanisms, you'll be equipped to analyse strategic decisions in your own exam scenarios and recognise how innovation drives sustainable business models.

Duration: 12m

Transcript

Every lesson comes with a full searchable transcript - included with the course.

Get the Strategic Business Leader course

All 101 video lessons, an AI Tutor in every lesson and lifetime access.

Already bought? Sign in