What is "Competitive Advantage"?

"Competitive Advantage" simply means that an organization has products or services that are desired by more consumers [people (who use a product or service)] than the company's competition.

If the company can produce the products or services it sells effectively [(in a way that produces a lot with very little waste)] and efficiently (well-made products at the lowest cost to make), it will generally attract more customers.

More customers who are happy with the product or service will come back for more and refer the company to others.

Customers = Revenues [Money/income] - So the more people who buy an organization's good and services, the more revenue the company will generate [create].

Low-cost = Higher Profits - If the cost of making a product or delivering a service is low and if these goods [products (that are bought and sold)] and services are priced correctly, the company will make more profit [(money made/good thing received)].

Profits are not only shared with the company owners and investors [(people or businesses who give money to help start businesses)], but are used to purchase [buy] new equipment, new technologies, expand marketing, hire more people, etc. That means the company can make the product even less expensively than before, offer more features, reach new/more customers and continue to grow higher

revenues and earn bigger profits.

#CompetitiveAdvantage #BusinessTerms #Revenues #Higherprofits #investors #Business101 #LUVBusiness

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