theory of competitive advantage

The theory of competitive advantage suggests that companies succeed by focusing on what they do best—whether it’s lower costs, unique products, or superior quality—that gives them an edge over competitors. By leveraging their strengths, they can attract more customers, offer better value, and earn higher profits. This advantage arises from resources, skills, or innovations that are difficult for others to replicate. Essentially, businesses that identify and develop their unique strengths can outperform rivals and achieve sustained success in the marketplace.