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Competitive advantage

Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025

Definition

Competitive advantage is a condition that enables a company to operate in a more efficient or otherwise higher-quality manner than the companies it competes with, which results in benefits accruing to that company. It often arises from leveraging unique attributes or capabilities to achieve better performance in the market.

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