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Definition: Competitive Advantage is the collection of one, or more, unique attributes in a business entity that makes the customer choose to do business with that entity rather than with its competition.
Also it is the name of a strategy model by Michael Porter, based on the idea of competition, in which firms should take offensive or defensive action to create a defendable position in order to cope successfully with the Five Forces in any industry.
According to Porter, there are only 3 generic strategies leading to sustainable CA: the cost leadership strategy, the differentiation strategy and the focus strategy.
At all times companies should avoid to become 'stuck in the middle'.