Competitive advantage is a fundamental principle of management in competitive economies. This concept is designed to help business owners to rapidly understand those resources that allow business entities to develop and maintain an edge over competitors.
Competitive Advantage Definition
Competitive advantage is held by a firm if it is able to create more economic value than the marginal (breakeven) competitor in its product market (Peteraf and Barney, 2003: 314). Porter (1980) argued that value can be created by producing a product or service at a lower cost, providing greater benefits, or a combination of the two.
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Competitive Advantage References (4 of up to 20) *
- Barney, J.B. (1991) Firm Resources and Sustained Competitive Advantage. Journal of Management, Vol. 17(1), pp. 99-120.
- Boxall, P. and Macky, K. (2009) Research and Theory on High-performance Work Systems: Progressing the High-involvement Stream. Human Resource Management Journal, Vol. 19(1), pp. 3-23.
- Business Week (2006) Fashion Conquistador. [Online] Available at: http://www.businessweek.com/magazine/content/06_36/b3999063.htm.
- Chakravorti, B. (2010) Finding Competitive Advantage in Adversity. [Online] Available at: http://hbr.org/2010/11/finding-competitive-advantage-in-adversity/ar/1.
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