Factors that enable a business to produce a product or service better or even more affordable than its competitors are referred to as competitive advantage. These characteristics help the producing unit to earn higher sales or higher margins than its competitors. Competitive advantage gives a company an advantage over other competitors. It can also increase a company’s and its shareholders’ worth.
A company’s quality, pricing, brand, intellectual property, location, or distribution network may give it a competitive advantage. Customer support, natural resource access, cost structure, and a supply of adequately skilled personnel could all play a role. Companies have always had a major advantage over their competitors when it comes to new technologies.
Due to various particular strengths or situations, competitive advantages provide greater value for a company and its shareholders. A much more sustainable competitive advantage makes it more challenging for its competitors to counteract it.
Being able to offer and sell higher-quality products and services at cheaper prices can lead to a firm acquiring and retaining customers more consistently than other businesses and brands competitors. Furthermore, gaining a competitive advantage can lead to increased brand loyalty and future interactions between a company and its target market.
Competitive advantage examples:
- Awell-trained workforce
- Brand image recognition
- Having access to materials that aren’t available to the general public
- Havingaccess to proprietary technologies
- Obtaining exclusive access to cutting-edge technology
- Providing unique goods or services