Competitive Advantage

A competitive advantage is any characteristic of a company, country or person that

differentiates it from others by placing it in a relative superior position to compete. That is, any
attribute that makes it more competitive than the others.

There are many examples of competitive advantages, such as: having better products than those
of the competition, producing products at lower cost, having a brand of value, offering
impeccable customer service, technological innovation that streamlines processes, having
patents, a talented team, etc.

Leadership in costs: in this case you compete for lower costs. The most significant example are
all low cost airlines.

Product differentiation: in this case the sale price of the product will be higher, competing with
a higher quality product. For example, Apple has achieved that its public associates its brand
with high performance equipment and the most advanced design.

Market segmentation: although it is not considered a competitive advantage any more, it is

mentioned, since it uses one of the other two competitive advantages but in a smaller area of
the market, industry or country.

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