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Competitive Advantage


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'.


Learn more about Competitive Advantage.

More on competition: Competition Levels, Competitive Intelligence, Cost Leadership, Curveball Strategy, Differentiation, more on competition...

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