Relative advantage is a strength as compared to the competition. The following are illustrative examples.
NationsA nation that has a lower opportunity cost in a particular industry relative to other nations. For example, a nation that can produce cranberries at $4 a bag as compared to a nation that produces them at $10 a bag. Another example is a nation that produces shoes that fetch an average price of $110 when another nation's shoes fetch $5 a pair on average.
OrganizationsBusiness capabilities, talent, knowledge, processes, infrastructure, tools and resources that allow an organization to produce superior results in a particular area. For example, a solar panel manufacturer with the lowest unit cost at a reasonable level of quality.
ProductsA product that is viewed as superior by customers such that it commands a premium price and high market share.
ServicesA service that fulfills a customer need better than the competition. This can include niche advantages such as a school in Tokyo that has a strong English program relative to all local competition.
CommoditiesIn the case of commodity products and services, cost is the primary type of relative advantage and a producer with a lower cost may dominate the market by competing on price.
IndividualsThe relative strengths of individuals in a competitive situation. For example, a job candidate with more industry experience versus a candidate that appears to be more open minded and flexible.
This is the complete list of articles we have written about competitive advantage.
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A few sources of competitive advantage for businesses.
The primary types of market position.
The common types of competitor.
A definition of experience economy with examples.
A definition of competitive position with examples.
A definition of switching costs with examples.
A definition of trade secret with examples.
An overview of comparative advantage with examples and comparisons.
The common types of competitive threat.
A reasonably comprehensive guide to marketing economics.
An overview of bliss point, a marketing principle.
Why three firms usually dominate an industry.
A list of ways to compete in a crowded market.
A definition of market saturation with a few examples.
The difference between premiumisation and commodization.
The common types of consumer goods.
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