competitive advantage



A superiority gained by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities.

Use this term in a sentence

  • We were fortunate enough to enjoy a competitive advantage in the market which allowed us to soar to number one in sales.

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  • Having a bunch of bright minds on your side will give you the competitive advantage when it comes to strategizing.

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  • I realized that having the staff dress up as characters would give us a competitive advantage because people loves characters.

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Notable Quotes

  • Is your company building moats?
    "Is your company building moats? This is superinvestor Warren Buffett's term for durable competitive advantages. Moats are essential because any company that starts to turn a consistent profit is going to attract competitors and copycats and that will put pressure on their profits unless they have some moats to keep the competitors away. No moat lasts forever, but some can last for decades. In technology, moats don't last long, and they're getting shorter with each passing year."
    - Tom Murcko
  • Searching for a Competitive Advantage? Consider These Questions
    "We always ask whether we ourselves have any competitive advantage in analyzing a particular company. Can we know the business better because no one else seems to be paying attention? Is the market's view being distorted by some behavioral or structural bias that we don't have?"
    - Brian Bares

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