A competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals, enabling it to generate more sales or superior margins compared to its market competitors. These factors can include cost structure, branding, product quality, distribution network, intellectual property, and customer service.
Building a competitive advantage can be achieved through strategies like:
While often confused, competitive and comparative advantages are distinct:
The impact of a competitive advantage can be measured by analyzing KPIs such as:
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