What Is Competitive Advantage? Definition, Examples & Identification

competitive advantage  A competitive advantage enables a company to perform better than its competitors It refers to factors allowing a company to produce services or Michael Porter proposed the theory of competitive advantage in 1985 The competitive advantage theory suggests that states and businesses should pursue policies

How Competitive Advantage Works To create a competitive advantage, a business must provide a clear benefit to its target market that's better To sustain competitive advantage, companies need to continuously innovate, invest in research and development, and stay attuned to market trends

Companies that concentrate on a particular niche can achieve a sustainable competitive advantage by being the best at serving that segment For example, a First, unlike measures such as profits and stock price, competitive advantage does not change based on random perturbations If a firm's competitive advantage