Advantages And Disadvantages Of Competitive Advantage

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Competitive advantage is described as a condition that would put a particular firm in a superior position as compared to the rest of the firms in the market in that industry. Competitive advantage enables a firm to generate greater value for the firm that is allows the firm to generate a higher sales volume and retain more competitors as compared to their competitors. It gives the firm an edge over its competitors. There can be various different types of competitive advantages. Some of them include the customer retention rate and product offerings that is new innovative product as compared to their competitors, among others.
There are two main types of competitive advantage:
• Comparative advantage: this is basically the company’s ability to produce goods and services at a lower cost as compared to their competitors. this would mean that the firm would be able to sell their goods at a lower price than its competitors therefore, would be able to retain a larger margin on sales.
• Differential advantage: this is when a company’s products or services differ from that of its competitor...

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