What is meant by "competitive advantage"?

"Competitive advantage" refers to a condition or circumstance that allows a company to perform better than its rivals. This can include various factors such as superior technology, brand loyalty, lower operational costs, or unique product features that set the company apart in the marketplace. By leveraging these advantages, a company can attract more customers, achieve higher sales, or maintain a strong market position.

The context of this concept highlights the importance of distinguishing factors that give a business an edge over others in the industry. For instance, a company might have a unique selling proposition that resonates with consumers or efficient production methods that reduce costs, enabling competitive pricing. Understanding competitive advantage is essential for businesses looking to develop effective strategies to outperform their competitors and sustain long-term growth.