Competitive Advantage

Definition

A competitive advantage exists when there is a match between the distinctive competencies of a firm and the factors critical for success within the industry that permits the firm to outperform its competitors. Advantages can be gained by having the lowest delivered costs, or by differentiation in terms of providing superior or unique performance on attributes that are important to customers.

Competitive strategy is a plan that attempts to define a position for the business that utilizes the competitive advantages that the business has over its competitors.

See Also

Competition
Competitive analysis
Competitive position

References

  1. ^ American Marketing Association, AMA Dictionary.

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