When it is difficult or impossible to out-strategize rivals (beat them with a superior strategy), the other main avenue to competitive advantage is to do a better job of empowering employees and flattening the organization structure. outcompete rivals with a stronger corporate culture. beat them with a healthy corporate culture based on such core values as high ethical standards, a strong sense of corporate social responsibility, and genuine concern for customer well-being. institute a more motivating and cost-efficient compensation and reward system. out-execute them (beat them by performing certain value chain activities in superior fashion).