a term popularized by Michael Porter of Harvard Business School and author of the business classic "Competitive Strategy", it is the unique blend of activities, assets, relationships, history, and market conditions that an organization exploits in order to differentiate itself from its competitors, and thus create value. View records related to this term
Occurs when one company can make more profits selling its products or services than its competitors. It occurs because a company can charge a premium because their product or service is more valuable, or because they can sell their product for less than their competitors because they are a more efficient producer. Rational strategists always seek to establish a long term competitive advantage for their company. Many managers associate competitive advantage with the description provided in Michael Porter's Competitive Advantage (1985).