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Competitive Parity vs Competitive Advantage

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Competitive parity is an area where you achieve standard or average results as compared to others in your industry. Competitive advantage is an area in which you achieve above average results in your industry, potentially surpassing all competition.
In some cases, competitive parity results from a failure to outdo the competition. However, it can also be the result of a deliberate strategy to achieve standard results in a particular area. For example, a technology company may target competitive parity in their accounting department. If accounting has nothing do to with their core business model, they may simply desire to comply with laws and follow best practices and standards. The same company may aggressively seek to innovate to achieve competitive advantage in other areas such as product development and customer service.
Generally speaking, firms seek competitive advantages in areas related to their core business model. It often makes sense to target competitive parity in other areas.
Competitive Parity vs Competitive Advantage
Competitive Parity
Competitive Advantage
Definition
Average capabilities in a particular area as compared to others in your industry.
Superior or industry leading capabilities.
Associated With
Best Practices
Standards
Outsourcing
Innovation
Next: Competitive Advantage
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 Parity

The definition of competitive parity with examples.

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A few sources of competitive advantage for businesses.

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