Competitive advantage refers to the unique attributes or capabilities that allow a company to outperform its competitors in the marketplace. This advantage can stem from various factors, such as cost leadership, product differentiation, brand loyalty, or access to superior resources. A competitive advantage enables a business to deliver greater value to its customers, gain market share, and sustain long-term profitability.
Types of Competitive Advantage
What is the difference between competitive advantage and core competency?
Core competency refers to a company’s unique skills or expertise, while competitive advantage is the market impact of leveraging those competencies to outperform competitors.
How can a competitive advantage be sustained?
Sustaining a competitive advantage requires continuous innovation, adapting to market changes, and investing in areas such as customer experience, branding, and technology.
Why is competitive advantage crucial for startups?
Startups operate in competitive environments and need a clear advantage to differentiate themselves, attract customers, and secure funding from investors.
Can a startup have multiple competitive advantages?
Yes, startups can combine multiple advantages, such as cost efficiency and product innovation, to strengthen their market position and appeal to diverse customer segments.
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