Competitive Advantage

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Dictionary Says

Definition of 'Competitive Advantage'

An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers than its competition. There can be many types of competitive advantages including the firm's cost structure, product offerings, distribution network and customer support.
Investopedia Says

Investopedia explains 'Competitive Advantage'

Competitive advantages give a company an edge over its rivals and an ability to generate greater value for the firm and its shareholders. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage.

There are two main types of competitive advantages: comparative advantage and differential advantage. Comparative advantage, or cost advantage, is a firm's ability to produce a good or service at a lower cost than its competitors, which gives the firm the ability sell its goods or services at a lower price than its competition or to generate a larger margin on sales. A differential advantage is created when a firm's products or services differ from its competitors and are seen as better than a competitor's products by customers.
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'Competitive Advantage'

  • Competitive Advantage Counts

    http://www.investopedia.com/articles/fundamental/03/040903.asp
    Competitive Advantage Counts. ... The trouble for investors is that, most of the
    time, sustainable competitive advantage is not easy to spot. ...

  • Public Relations: Offering Businesses A Competitive Advantage

    http://www.investopedia.com/articles/financial-theory/10/public-relations-competitive-advantage.asp
    Public Relations: Offering Businesses A Competitive Advantage. May 25 2010 |
    Filed Under ยป Business, Small Business. Public relations ...

  • What is an economic moat?

    http://www.investopedia.com/ask/answers/05/economicmoat.asp
    ... Remember that a competitive advantage is essentially any factor that allows a company
    to provide a good or service that is similar to those offered by its ...

  • Fundamental Analysis: Qualitative Factors - The Company ...

    http://www.investopedia.com/university/fundamentalanalysis/fundanalysis2.asp
    ... Competitive Advantage Another business consideration for investors is
    competitive advantage. A company's long-term success is driven ...

  • 3 Secrets Of Successful Companies

    http://www.investopedia.com/articles/stocks/08/secrets-success-company-stock.asp
    ... Competitive advantage; Above-average management; Market leadership. Competitive
    Advantage Michael Porter pioneered the concept of competitive advantage and broke ...

  • Economic Moats: A Successful Company's Best Defense

    http://www.investopedia.com/articles/fundamental-analysis/08/moats.asp
    ... free balance sheets and a significant and sustainable competitive advantage in the
    marketplace are some of the reasons great companies stand out from the pack. ...

  • 4 Steps To Creating A Better Investment Strategy

    http://www.investopedia.com/articles/trading/10/creating-a-better-investment-strategy.asp
    ... What is my competitive advantage?" You may have special industry knowledge or
    subscribe to special research that few other investors have. ...

  • Spotlight On The Solar Industry

    http://www.investopedia.com/articles/stocks/08/solar-investing.asp
    ... As with all investments, an understanding of the industry dynamics and the
    company's competitive advantage is vital to earning returns. ...

  • 7 Hedge Fund Manager Startup Tips

    http://www.investopedia.com/articles/financial-careers/08/become-a-hedge-fund-manager.asp
    ... for your fund. 1. Competitive Advantage Your hedge fund must have a
    competitive advantage over others in the market. This may be ...

  • Advertising, Crocodiles And Moats

    http://www.investopedia.com/articles/06/admoats.asp
    ... brand awareness. In this article we discuss how advertising works to fortify
    a company's competitive advantage. (For further reading ...

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