Competitive Advantage

Competitive Advantage


It refers to a feature that makes customers prefer a brand over other brands in the market. By understanding and promoting brand competitive advantage, companies can gain more market share. A competitive advantage must be difficult to replicate, meaning that it is not a competitive advantage if it is easily copied or imitated. Before creating a competitive advantage, some things should be considered:

  • The provided advantage should be real and valuable and create interest in the customer
  • Complete knowledge of the target market, to know the customers and how to supply the market.
  •  Knowing the competitors in the industry to provide products that the competitors are unable to provide.
  • Examples of competitive advantage: Skilled workforce, unique geographical location, access to new technology, the possibility of producing products at a lower cost, recognition of the brand image, etc. are examples of competitive advantage for the brand.

Types of C.A. strategies:
There are three main strategies for competitive advantage:

Being a cost leader: In a cost leadership strategy, the goal is to become a low-cost product manufacturer or service provider. If a company has the ability to produce products at a lower cost than its competitors., it can set a price to sell its product that  competitors cannot duplicate it. Therefore, a company that adopts a cost leadership strategy can make a profit due to its significant cost advantage over its competitors.

Differentiation: In the differentiation strategy, a company’s products or services are differentiated from competitors’ products or services. In this strategy, you can achieve profit by providing high-quality products or services or innovation in products or services.

Focus: In a focus strategy, the company focuses on a limited segment of the target market. This strategy is successful, if the company can successfully create products or services that can satisfy the target customers. 

There are two types of focus strategies:

  1. Cost-focus: the producer with the lowest cost in a narrow market segment.
  2. Differentiation-focus: distinctive products/services in a narrow market segment.

Successful examples in implementing competitive advantage:

  • McDonald’s Company: McDonald’s main C.A. relies on a cost leadership strategy and offers products at a lower selling price than its competitors.
  • Louis Vuitton: Louis Vuitton’s C.A. relies on two strategies: differentiation and differentiation- focus. The company is able to lead the luxury market and command premium prices through product uniqueness.


Totally, It differentiates a company from its competitors and helps to provide products with higher prices, more customers, and brand loyalty. Creating such an advantage in today’s world is essential for business success. and without it, companies will struggle to survive.