Competitive advantage analysis looks at the differences among competitors or uniqueness, in the case of a firm holding a monopoly position.

The sources of advantage are superior skills, resources, and controls." Superior skills enable an organization to select and implement strategies that will distinguish the organization from its competition. Skills include technical, managerial, and operational capabilities.

For example, knowledge of customers,' needs and requirements helps a company use its capabilities to satisfy its customers.

Research and development expertise is another skill. Superior resources are the enabling aspects of advantage.

Examples include strong distribution networks, production capability, marketing power (experienced sales force), technology, and natural resources.

De Beers' control of over 80 percent of the supply of uncut diamonds is illustrative. This monopoly position enables the company to control the flow and prices of diamonds throughout the world. Superior controls include capabilities a monitoring and analyzing business processes and results.

For example, superior cost controls constrain costs and identify areas where management assessment and action ore; ceded. Control systems also provide performance benchmarks. Monitoring efforts hold extends Beyer J internal operations to include customers, competition, and distribution networks.

Companies with powerful computerized information systems like Walmart (discount sties) and Frito-Lay (snack foods) have superior controls.