Competitive Advantage In Business

The basic definition of competitive advantage is straightforward. 

The term "competitive advantage" became a term of art in business strategy with Michael Porter's 1984 insightful book of that title.  Indeed, Warren Buffett has said that he evaluates a company by looking for "sustainable competitive advantage."

The basic definition of competitive advantage is straightforward.  If your business can produce at a lower cost than can competitors, or if it can deliver more perceived value than can competitors, or a mix of the two, then you have a competitive advantage.  

ACTION POINT: Are your costs lower or is your perceived value higher than that of your competitors?