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What is a Competitive Disadvantage?

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A competitive disadvantage is an unfavorable circumstance or condition that causes a firm to underperform in an industry. Disadvantages typically include things such as know-how, scale, scope, location, distribution, quality, product features, process efficiency, productivity and costs. Competitive disadvantage may be measured by benchmarking against a top competitor or industry average for a particular factor.

Notes

The term competitive disadvantage doesn't necessarily imply that a firm is at a complete disadvantage to other firms. For example, a particular firm may have a cost advantage and a quality disadvantage.
Overview: Competitive Disadvantage
Type
Strategy
Economics
Definition
An unfavorable circumstance or condition relative to a competitor or industry.
Related Concepts
Competitive Advantage
Benchmarking
Business Strategy
Competition
Next: Examples of a Competitive Disadvantage
More about competitive advantage:
Absolute Advantage
Bargaining Power
Barriers To Entry
Brand
Business Cluster
Business Scale
Business Strengths
Capital
Competitive Differentiation
Competitive Parity
Competitive Pressure
Cost Advantage
Cost Innovation
Cost Strategy
Critical Mass
Customer Satisfaction
Design
Digital Maturity
Distinctive Capability
Distribution
Economic Advantage
Economies Of Density
Economies Of Scale
Economies Of Scope
Experience Economy
Information Advantage
Information Asymmetry
Know-how
Market Position
Market Power
Marketability
More With Less
Network Effect
Organizational Culture
Price Leadership
Product Development
Productivity
Relational Capital
Relative Advantage
Risk Management
Strategic Advantage
Switching Barriers
Switching Costs
Trade Secrets
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Competitive Disadvantage

A few examples of a competitive disadvantage.

Diseconomies Of Scale

Disadvantages faced by large organizations such as bureaucracy.

Competitive Threat

The common types of competitive threat.

SWOT Weaknesses

An overview of SWOT weaknesses with examples.

Business Weaknesses

A list of business weaknesses for strategic planning exercises such as swot analysis.

Opportunity

An overview of opportunity with examples.

Business Attributes

A list of common business attributes.

Situation Analysis

An overview of situation analysis with examples.

Contingency Theory

An overview of contingency theory with examples.

Business SWOT

A list of business strengths, weaknesses, opportunities and threats.

Business Context

An overview of business context with examples.

Competitive Parity

The definition of competitive parity with examples.

Competitive Advantage

A few sources of competitive advantage for businesses.

Competitive Parity vs Competitive Advantage

The difference between competitive parity and competitive advantage.

Competitive Advantage

A few sources of competitive advantage for businesses.

Competitive Advantage vs Distinctive Capability

The difference between competitive advantage and distinctive capability.

First-Mover Advantage

Why being first to a market has advantages.

Competitive Benchmarking

A definition of competitive benchmarking with examples.

Digital Maturity

The common types of digital maturity.

Business Scale

The common types of business scale.

Business Competition

The common types of business competition.

Marketability

The common types of marketability.

Competitive Map

A definition of competitive map with examples.

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