Just b/c you have something that’s scarce doesn’t mean you’re profiting from it.
- Permanent vs. transitory competitive advantage
Differences are not competitive advantage. And competitive necessities are not advantages (questions of resources); necessity = viability
Location itself unlikely to be a competitive advantage. There will be competition for that scarcity, so it must be the location + unique value add
- His Lebron argument talks about the negotiation: Lebron can capture an avg of ##$ in any market and we estimate that we can add a net unavailable of $##
His point about doctors and their ability to be competitive advantages:
- If your doctors can produce break through drugs you would adapt your marketing and operation. “We have been misdirecting huge amo[unts of money on a false premise. It’s important to be realistic and not fall into the trap b/c your resources should align accordingly”
You likely have limited scarce assets and then surround those w/ your services and offerings and operations
- The financial analysis shows that whatever you think the advantage are in respects to B & C, what matters is what you can also see on the financial statements, and you see that on the financial statement they have an advantage in costs.