What is Competitive Advantage?
A condition or circumstance that puts a company in a favorable position over competitors.
Detailed Explanation
Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than rivals, leading to greater sales or margins. Sustainable competitive advantages are difficult for competitors to replicate and can come from various sources including technology, brand, cost structure, network effects, or unique capabilities. Understanding competitor advantages is central to CI.
Real-World Examples
Proprietary technology as competitive advantage
Brand recognition advantage
Network effects advantage
How It's Used
Strategic planning
Investment analysis
Competitive defense
Product development
Put Competitive Advantage Into Practice
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