Competitive Advantage
Competitive Advantage Meaning:
What a firm has that allows it to make more profit than its rivals. A competitive advantage arises when a firm is able to give its customers the same thing as its rivals but with more benefits, the same thing but at lower cost, or both.
What a firm has that allows it to make more profit than its rivals. A competitive advantage arises when a firm is able to give its customers the same thing as its rivals but with more benefits, the same thing but at lower cost, or both.
There are many ways a firm can gain the ability to give customers more benefits, the same benefits at lower cost, or both: access to cheaper raw materials; better staff; cheaper labor; better brand recognition; proprietary technology, and so on. Coca-Cola’s competitive advantage, for example, could be said to arise due to its supreme brand recognition.