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 Michael 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.

More on competitive advantage. More on competition: Competitive Intelligence, Cost Leadership, Differentiation, Divide and Conquer, Focus Strategy, more...