Definition

competitive advantage

Competitive advantage is the favorable position an organization seeks in order to be more profitable than its competitors.

Competitive advantage involves communicating a greater perceived value to a target market than its competitors can provide. This can be achieved through many avenues including offering a better-quality product or service, lowering prices and increasing marketing efforts. Sustainable competitive advantage refers to maintaining a favorable position over the long term, which can help boost a company's image in the marketplace, its valuation and its future earning potential.

Related glossary terms: business integration, IT strategy (information technology strategy), business technology (BT), prescriptive analytics, business services , disruptive innovation, business process management (BPM), mission mode project (MMP), organizational change management (OCM), IT innovation

Contributor(s): Rachel Lebeaux

This was last updated in November 2012

Posted by: Margaret Rouse

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