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13-Oct-2017 16:07

Back in 1946, Procter & Gamble gave away a box of Tide with every washing machine sold in America. When P&G introduced Febreze, consumers liked it but didn’t use it much.The problem, it turned out, was that the product came in what looked like a glass-cleaner bottle, so users kept it under the sink.Why do companies routinely succumb to the lure of rebranding? They choose the leading product in the market primarily because that is the easiest thing to do. Research suggests that what makes competitive advantage truly sustainable is helping consumers avoid having to make a choice.

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How does the theory of cumulative advantage play out for companies other than Procter & Gamble?

That’s an edgy thought, to be sure; but a lot of evidence contradicts it.

Consider Southwest Airlines, Vanguard, and IKEA, all featured in Michael Porter’s classic 1996 HBR article “What Is Strategy?

” as exemplars of long-lived competitive advantage.

A full two decades later those companies are still at the top of their respective industries, pursuing largely unchanged strategies and branding.

Habits, like other elements of the environment, can shift.

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