Competitive Advantage
that which one firm can do better than another to satisfy consumer needs and wants. | ||||
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Competitive Advantage definition was found in categories: Business & Finance(1) Encyclopedia(1)
Competitive Advantage Definition from Business & Finance Dictionaries & Glossaries
| Raynet Business & Marketing Glossary |
Competitive Advantage
an element within a product offering that is particularly attractive to customers and not offered to by competitors (make it better, cheaper or different).
an element within a product offering that is particularly attractive to customers and not offered to by competitors (make it better, cheaper or different).
Competitive Advantage Definition from Encyclopedia Dictionaries & Glossaries
| Wikipedia English - The Free Encyclopedia |
Competitive advantage
Competitive advantage (CA) is a position that a firm occupies in its competitive landscape. Michael Porter posits that a competitive advantage, sustainable or not, exists when a company makes economic rents, that is, their earnings exceed their costs (including cost of capital). That means that normal competitive pressures are not able to drive down the firm's earnings to the point where they cover all costs and just provide minimum sufficient additional return to keep capital invested. Most forms of competitive advantage cannot be sustained for any length of time because the promise of economic rents drives competitors to duplicate the competitive advantage held by any one firm.
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