what is competitive advantages write In the form of pointsSo

what is competitive advantages?

write In the form of points

Solution

ANSWER:

-- A competitive advantage is a leverage that a firm has over competitors which is gained by offering consumers greater value, either by providing greater service and benefits that justifies higher prices or offering lower prices

-- Competitive advantages are attributed to numerous factors including branding, cost structure, the quality of product offering, intellectual property, the distribution network and customer service.

--The competitive advantages are mainly of two types - comparative advantage and differential advantage. A comparative advantage is generated when firm has the ability to produce a good or service more efficiently in comparison to it\'s competitors, which result to greater profit margins. A differential advantage is generated when products or services by a firm differ from the offerings of it\'s its competitor and are seen as superior.

--Competitive advantages creates greater value for a firm and its shareholders due to certain strengths or conditions