Competitive advantage refers to the ability of a firm to outperform its competitors in terms of sales, market share, or profitability. It is achieved by offering superior products, lower costs, or unique marketing strategies.
Related terms
Cost leadership: A competitive strategy where a firm aims to become the lowest-cost producer in the industry.
Product differentiation: The process of creating distinct features or attributes in a product that sets it apart from competitors' offerings.
Market share: The portion of total sales within an industry that is captured by a specific company.