competitive advantage: The term is commonly used to mean “Here’s what we think we’re good at,” as in “Our competitive advantage is technology.” Or, it is used even more loosely, as in “Our competitive advantage lies in our people.” Porter’s definition is tightly linked to the economics of competition: you have competitive advantage if your profitability is sustainably higher than that of your rivals. Then you can dig further to understand whether that advantage comes from higher prices, lower costs, or some combination of both. These differences in relative price or relative costs arise
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