Defining Competitive Advantage: How Much More Value Do You Deliver Than Your Competitors?

This chapter argues that competitive advantage is the single most important gauge of organizational success. To clarify this assessment, it defines exactly what we mean by competitive advantage. At its most fundamental competitive advantage means achieving a bigger gap than one’s competitors between the value customers see in a product and the costs incurred in providing that product. All value is relative, and customers have choices. Competitive advantage comes from providing greater value than competitors for chosen customers. Controlled Vocabulary Terms competitive advantage; Competitors