DECISION SUPPORTED
Which source of value withstands substitutes, imitation and time?
07 · Demonstrate
Distinguishing the claimed advantage from the demonstrated advantage
DECISION QUESTION
Which source of value withstands substitutes, imitation and time?The diagnosis attaches each claim to evidence, a dependency, a defence mechanism and a speed of erosion.
Decisions supported
What the page really helps to choose.
- 01Invest in a capability
- 02Protect a resource
- 03Abandon a fragile claim
- 04Track the erosion of an advantage
ORIGINAL ASSET
Half-life of an advantage
Calculates in how many years the initial gap loses half its value when imitation and diffusion erode it each year.
INPUTSAnnual erosionInitial gapFive-year horizonHalf-life formulaImitation assumption
→OUTPUTSEstimated half-lifeRemaining gap per yearErosion curveCSV model
Decision reference
Move from the subject to the choice that depends on it.
ASSET TO USE
Half-life of an advantage: Calculates in how many years the initial gap loses half its value when imitation and diffusion erode it each year.
NEXT ELEMENT TO EXAMINE
Distinctive capabilitiesExplore →Move from the claim to an observable mechanism
A capability is advantageous only if it improves a result valued by the market relative to the alternatives. The evidence links an activity, a mechanism, a comparable measure and a period, without confusing internal competence with customer preference.
- Customer outcome
- Relative gap
- Mechanism
- Period observed
Qualify each piece of evidence without compensating for the unknown
Each link receives a distinct status: proven, assumption or unknown. A rare resource without a suitable organisation, or a stated preference without observed behaviour, remains an assumption. Critical gaps block the conclusion instead of being absorbed into an average score.
- Proven
- Assumption
- Unknown
- Rejection condition
Treat erosion as a scenario
The half-life displayed by the tool is an illustrative scenario based on an entered rate. It is neither a forecast nor an observed duration. The decision must follow real signals: imitation, substitution, drop in relative price, loss of preference or a dependency that has become critical.
- Erosion assumption
- Observable signal
- Review threshold
- Possible action
36 · ORIGINAL ASSET
Half-life of a competitive advantage
Erosion calculation
The model estimates the time needed to lose half the initial gap when imitation and diffusion erode the advantage every year.
Download the CSV model ↓Estimated half-life5.4 yearsln(0.5) ÷ ln(1 − erosion rate)
Teaching case · simulated data · no real-world market conclusion.
Sources and foundations
Check the definitions and the limits of the method.
- Harvard Business School, Strategic Positioning (opens in a new tab)Institutional source on relative position, value proposition and activity system.
- Barney, Firm Resources and Sustained Competitive Advantage, 1991 (opens in a new tab)Seminal article on the conditions linking resources and sustained competitive advantage.
MOVE FROM ANALYSIS TO YOUR DECISION
Produce a testable decision mandate
Go deeper
The next questions to address.
Move from the notion to its application, then to the decision that depends on it.
01Explicit scope
Unit, horizon and boundaries visible.
02Qualified evidence
Source, date, method and confidence.
03Sensitivity tested
Weights and assumptions that tip the result.
04Review planned
Signal, threshold and owner.
MOVE FROM ANALYSIS TO YOUR DECISION