Low brand recognition
Low product quality
Poor service culture
Inability to change
Slow time to market
Inability to manage complex projects
Lack of creativity and inventiveness
Lack of product features
Slow response to customers
Disconnected from market realities
Poor user interfaces
Product improvements that make products worse
Inefficient supply chain
Low performing partners
Low performing employees
Negative company culture
Lack of response to customer feedback
Lack of response to poor reviews
Customer input doesn’t drive product improvements
High employee turnover
Poor customer service
Inefficient legacy technologies
Culture of mediocrity
Hierarchies based on seniority over performance
Employees with exaggerated sense of entitlement
Poor product positioning
Limited access to capital
Poor customer relationships
Higher overhead costs
Internal red tape
Inability to scale
Poor ethical practices
Aging facilities, infrastructure and equipment
Small size relative to competitors
The inefficiencies of very large firms such as communication overhead
Vulnerability to product knockoffs and imitators
Inefficient product variety
Overreliance on a small number of employees or partners
TechnologyAn expensive, slow, error prone or unusable technology platform.
ScaleIn many cases, a small firm is at a disadvantage to a larger firm simply because they lack the resources to compete in areas such as product development and advertising.
ScopeAn online retailer that sells only shoes may be at a disadvantage to a retailer that sells everything because people tend to want to shop at one place.
LocationThe coffee shop across the street from a busy train station may outperform the one three blocks from the station.
BrandAn unknown brand is at a disadvantage to a widely recognized and respected brand.
CostA more expensive cost per unit or overhead costs can be a dangerous disadvantage in any industry that produces commodities.
ValuesIn many cases, customers will purchase from firms that align with their values such as respect for people and the environment. If your firm has a poor ethical climate this can be a significant disadvantage and risk.
ProductivityA bloated large firm with a political culture and low motivation amongst employees may be vastly less productive than a small, aggressive firm.
QualityA reputation for low quality such as low rankings on review sites.
FeaturesLacking features in products and services that are in high demand by customers.
ProcessesProcesses that are error prone, slow or expensive relative to the competition.
|Overview: Competitive Disadvantage
A condition or circumstance that causes a firm to lag the competition in a particular area.