Nations
A 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.Organizations
Business 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.Products
A product that is viewed as superior by customers such that it commands a premium price and high market share.Services
A 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.Commodities
In 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.Individuals
The 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.| Overview: Relative Advantage | ||
Type | ||
Definition | A strength as compared to the competition. | |
Related Concepts | ||
