Issue Brand equity, scale, and distribution no longer guarantee competitive advantage

Summary

McKinsey concludes that technology and persistent cost pressure are changing how consumers weigh value, and with it the basis of competitive advantage. Brand equity, scale and distribution still count, but they no longer ensure success on their own. Advantage now depends more on how well a company operates within a complicated web of platforms, partners and consumer touchpoints, and how much value it creates for shoppers. The report says the likely winners will be visible in social media and AI agent environments and will reshape portfolios around more specific needs. They will also build experiences that strengthen brand meaning and design offers around a more nuanced idea of value. Incumbents that rely on traditional strengths alone risk falling behind more adaptive rivals.