Competitive Advantage
Why do you buy Coke over Pepsi? Why will you spend $80 on a pair of a certain brand of sneakers? The answer lies in the term competitive advantage. Competitive advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. It is the reason behind brand loyalty and why you prefer one product or service over another. There are three different types of competitive advantages that companies can actually use. They are cost, product/service differentiation, and niche strategies.