Flevy Management Insights Q&A
What are table stakes in business?


This article provides a detailed response to: What are table stakes in business? For a comprehensive understanding of Competitive Advantage, we also include relevant case studies for further reading and links to Competitive Advantage best practice resources.

TLDR Table stakes are the essential baseline requirements an organization must meet to compete effectively in its market.

Reading time: 4 minutes

Before we begin, let's review some important management concepts, as they related to this question.

What does Table Stakes mean?
What does Market Analysis mean?
What does Customer Engagement mean?
What does Strategic Planning mean?


Understanding what are table stakes in business is crucial for any C-level executive aiming to navigate the complexities of today’s market dynamics. The term "table stakes" originates from poker, where it refers to the minimum amount required to play. In the business context, it translates to the essential elements or baseline requirements an organization must meet to compete in a given market. These are not the factors that will differentiate an organization from its competitors but rather the prerequisites for just being in the game.

For instance, in the digital age, having a functional website and a social media presence might be considered table stakes for most industries. This doesn't guarantee success but failing to meet these expectations can significantly hinder an organization's ability to compete. Similarly, compliance with regulatory standards, basic customer service capabilities, and efficient supply chain operations are other examples of table stakes in various sectors. They form a framework or a template upon which more strategic initiatives can be built.

It's important to note that what constitutes table stakes can evolve over time as industry standards and customer expectations change. A few years ago, having an e-commerce option was a competitive differentiator for many retailers; today, it's a basic customer expectation. Consulting firms such as McKinsey and Accenture have emphasized the importance of continuously reassessing and updating an organization's understanding of table stakes in line with digital transformation and market trends.

Identifying Your Table Stakes

To identify the table stakes in your industry, start by conducting a thorough market analysis. This involves understanding customer expectations, regulatory requirements, and the baseline offerings of your competitors. Consulting firms often use frameworks and templates to systematically analyze these factors, providing a clear overview of the non-negotiables in your sector.

Another effective strategy is engaging with customers directly through surveys, focus groups, or one-on-one interviews. This direct feedback can offer invaluable insights into what your target market considers the minimum acceptable product or service offering. Remember, the goal is to identify the must-haves, not the nice-to-haves.

Lastly, benchmarking against industry leaders can offer a clear picture of the table stakes. Look for patterns in the offerings of the top performers in your industry. If all leading organizations have a certain feature, service, or capability, it's likely a table stake. However, be cautious not to confuse differentiation strategies of these leaders with basic industry requirements.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Strategically Leveraging Table Stakes

Once you've identified the table stakes, the next step is to ensure your organization not only meets but exceeds these foundational requirements wherever possible. This doesn't mean turning every table stake into a differentiation point but rather ensuring that your baseline is solid and reliable. For example, if timely customer service is a table stake in your industry, aim for not just timely but exceptional customer service.

Incorporating technology can often help in meeting and exceeding these table stakes more efficiently. Automation, AI, and analytics target=_blank>data analytics are tools that can enhance operational efficiency, customer service, and compliance, ensuring that your organization meets the basic requirements more effectively than competitors.

Finally, it's crucial to communicate your adherence to these table stakes through your marketing efforts. Highlighting how your organization meets and exceeds these basic requirements can reassure potential customers that you're a viable player in the market. This is where strategic planning and performance management come into play, ensuring that your organization's efforts in meeting table stakes are recognized and valued by your target market. Understanding and strategically managing table stakes is essential for any organization looking to remain competitive in today's fast-paced business environment. By identifying, meeting, and exceeding these baseline requirements, organizations can ensure they are positioned not just to compete but to thrive.

Best Practices in Competitive Advantage

Here are best practices relevant to Competitive Advantage from the Flevy Marketplace. View all our Competitive Advantage materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Competitive Advantage

Competitive Advantage Case Studies

For a practical understanding of Competitive Advantage, take a look at these case studies.

Digital Transformation Strategy for Boutique Hotel Chain in Southeast Asia

Scenario: A boutique hotel chain in Southeast Asia is facing challenges in maintaining its competitive advantage due to a 20% decline in occupancy rates and a 15% drop in average daily rates over the past two years.

Read Full Case Study

AgriTech Competitive Strategy Analysis for Sustainable Market Leadership

Scenario: The organization in question operates within the agritech sector, focusing on sustainable farming solutions.

Read Full Case Study

Competitive Advantage Enhancement for a Global Telecommunications Company

Scenario: A global telecommunications company is struggling to maintain its competitive edge in the face of fierce competition and rapidly evolving technology.

Read Full Case Study

Market Positioning Strategy for High-End Gaming Company

Scenario: The organization in question operates within the high-end gaming industry, focusing on innovative gaming experiences for affluent consumers.

Read Full Case Study

Revamping Strategic Positioning for Retail Conglomerate in Competitive Marketplace

Scenario: A conglomerate widely known in the retail industry has recently undergone stark revenue and market share loss due to intense competition and digital disruption.

Read Full Case Study

Digitization Strategy for Mid-Sized Maritime Logistics Firm

Scenario: A mid-sized maritime logistics firm is struggling to maintain its Competitive Advantage in an industry that is rapidly adopting digital technologies.

Read Full Case Study

Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

What impact will the increasing importance of sustainability have on companies' competitive strategies?
Sustainability is transforming Competitive Strategies by embedding into Strategic Planning, Operational Excellence, and Innovation, driving growth, differentiation, and long-term resilience in businesses. [Read full explanation]
How is the rise of artificial intelligence expected to redefine competitive advantage across different industries?
The rise of AI is transforming industries by revolutionizing Strategic Planning, Operational Excellence, and Customer Experience, making its integration a strategic imperative for long-term success. [Read full explanation]
What strategies can companies employ to protect their competitive advantage in a rapidly evolving market?
Organizations can maintain their market position by prioritizing Innovation, Customer Centricity, and Strategic Partnerships, alongside investing in R&D, leveraging technology, and adopting agile methodologies to meet customer needs and accelerate product development. [Read full explanation]
How can organizations leverage customer feedback to continuously refine their competitive advantage?
Organizations can maintain agility, drive Innovation, and achieve Operational Excellence by integrating customer feedback into Strategic Planning, co-creating solutions, and streamlining processes to meet market needs. [Read full explanation]
What is the role of ethical sourcing in enhancing a company's competitive advantage in the global market?
Ethical sourcing bolsters Brand Reputation, Customer Loyalty, Risk Management, Supply Chain Resilience, Innovation, and Market Opportunities, crucial for long-term success in the global market. [Read full explanation]
How can businesses effectively measure the ROI of initiatives aimed at creating or enhancing competitive advantage?
Effectively measuring the ROI of initiatives aimed at competitive advantage requires a comprehensive approach, combining relevant KPIs, financial metrics, and qualitative assessments, as demonstrated by Amazon and Nike. [Read full explanation]

Source: Executive Q&A: Competitive Advantage Questions, Flevy Management Insights, 2024


Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.