Competitive advantage

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.

Related terms

Distinctive Competencies: These are unique strengths a company possesses that enable it to outperform its competitors, such as superior technology or highly skilled personnel.

Value Proposition: This is the promise of value to be delivered to customers, which sets a product or service apart from competitors.

Market Positioning: This involves strategizing how a product will be perceived in the market relative to competitors, aiming to occupy a unique market niche