Competitive Advantage

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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 book, Competitive Advantage (1985).

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