- Now you know that competitive advantage helps attract more customers, establish brand loyalty, and make you differ from your competitors.
- However, one of the most important competitive advantages sought today is access to increasingly advanced technology and lower prices.
- According to Porter (1998, p.2), cost advantage and product differentiation advantage are the main types of competitive advantage of the firm.
- There are many different aspects of a business that can make up a competitive advantage, and we’ll look at a few examples in this article.
- A competitive advantage is what sets an organization apart from its competitors, allowing it to generate greater sales or margins and retain more customers.
- The competitive advantage factor is not limited to business firms or companies. Its benefits extend to countries, organizations, or at the individual level.
- The strategy of your company may be different, but each decision you make and feature you define aims to achieve a competitive advantage.
- As such, they argue, no competitive advantage can be sustained. There are only shorter-term temporary competitive advantages and slightly longer-term ones.
- To put it simply, a competitive advantage is what makes a product, service or a brand preferable to all of the other alternatives within a market.
- Michael Porter defines three generic strategies that firm's may use to gain competitive advantage: cost leadership, differentiation, and focus.