What is Competitive Advantage? Definition & Meaning of Competitive Advantage in Business - Animated

We are looking at the term Competitive Advantage, Not only do we look at examples of competitive advantage in business. We also examine competitive advantage strategy and the competitive advantage example of Rab the Rockstar the world first Entrepreneur.

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Want to talk the talk when it comes to business but you don’t quite have the know-how? You’ve come to the right place! My series Speak Like Shaf will explain all those confusing business terms and will make you feel more confident and self-assured when you’re using them. Today we are going to look at what competitive advantage means.



Put simply, competitive advantage is the condition that enables a company to do better than its rivals. The sporting world provides a great analogy. Serena Williams has won a whopping 23 Grand Slam singles titles and has dominated the game. But what gave her the edge over her rivals? More than anything, it was her will to win. To win once is an achievement but to do it time after time takes incredible mental strength. Talking of strength, she was more powerful and more accurate than her rivals. This would have counted for nothing if she wasn’t dedicated though, and she got up morning after morning, year after year to practice at 6am. All of these qualities combined to give her a competitive advantage. She even won the Australian Open when she was pregnant – now that does make her a superwoman!



Sprinter Usain Bolt’s long legs gave him an advantage, swimmer Michael Phelps’ big feet helped him succeed but, just like Serena, these advantages wouldn’t count for anything if they didn’t dedicate their lives to their sport and have the determination to win. People in business could learn a thing or two from them. You can have all the talent in the world but unless you are willing to put in the hard graft, you won’t realise your – and your company’s – true potential. A business can get a competitive advantage by producing superior products, lower pricing, better technology, and a more dynamic workforce.



In previous vlogs, we’ve met the world’s first entrepreneur. Rab The Rock Star was a Stone Age man who set up a business making and selling tools for hunting animals. You see, Rab was a rubbish hunter but a brilliant businessman. He couldn’t catch a deer to save his life but his spears, bows and arrows did the trick for his neighbours and friends. Before long, Rab’s business grew and he started employing people. It wasn’t just his business that grew, his success inspired some rivals to set up too. But Rub’s designs gave him a competitive advantage because they were far superior than anything else that was available. He was able to produce more and sell them at a better price so his profit margins were better. And because he was the first company to do this, he was trusted by his customers and they stayed loyal to him. All of these factors meant he had a competitive advantage over his rivals.



So if you’re starting out, think about what could set you apart and give you an advantage. Is it your product? Your service? Your price? Like Rab The Rock Star and athletes Serena, Usain and Michael, you could be in a league of your own. Let me know what you think and don’t forget to subscribe to my YouTube channel, it won’t cost you a penny and you can discover my competitive advantages over my business rivals!

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