Competitive Advantage Definition

competitive advantage definition

What is Competitive Advantage?

Competitive advantage definition: competitive advantage is an element that allows one brand to perform better than its competitors.

A competitive advantage is most often driven by the consumer’s increased perception of value.

If a brand can offer better:

  • Prices
  • Products
  • Experiences
  • Status symbols

They are seen to have a competitive advantage.

Depending on the target audience or industry, competitive advantage will be based on one of the following models:

  1. Comparative advantage: where products with the highest-quality or lowest prices win
  2. Differential advantage: where the customer is influenced by the benefits of a product

Marketers strive for a differential competitive advantage because it is emotionally-driven.


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