What is “competitive advantage”?

Competitive advantage refers to the qualities or attributes that allow an organization to perform better than its competitors in the marketplace. This can include factors such as unique technologies, superior customer service, brand reputation, cost efficiency, and innovative processes. When a company successfully leverages its competitive advantages, it can attract more customers, generate higher revenues, and achieve greater profitability compared to others in the industry.

The essence of competitive advantage is not merely about being able to match what others are offering; rather, it is about possessing unique strengths and capabilities that make the organization stand out. This can lead to a sustainable edge over competitors, allowing the organization to enjoy profitability and market leadership over time. Thus, this definition aligns perfectly with how businesses strive to excel in their respective markets.