A-Z Popular Blog Strategy Search »
Business Strategy
Related Guides
Strategy Basics
Key Concepts
Competitive Advantage

Competitive Disadvantage

Strategic Planning

Business Expansion

15 Types of Strategic Advantage

 , updated on
A strategic advantage is a position that makes it likely a firm with outperform the competition in the long term. The following are common types of strategic advantage.


The talent of your people including at the governance and executive management level.


Relationships with stakeholders including investors, governments, partners, customers and the communities in which you operate.

Home Country

The country where you are located. For example, a lower tax rate can be a significant advantage over the competition as it allows you to invest more of your profits back into your business.


Your business processes such as a production line that produces high quality items at low cost.


Things that you can do. For example, a firm that is able to consistently design products and services with high perceived value.

Organizational Culture

The norms, expectations and symbols of your organization. For example, a firm where people take pride in their work.


How well your brands are recognized and your reputation.

Business Model

How you capture value. For example, an ecommerce company that provides a two-sided market versus a firm that sells its own products.

Products & Services

The position, quality and unit cost of your products and services. For example, the cheapest organic coffee on the shelves.


Your overhead and unit costs. All else being equal, a firm that spends 5% of revenue on general administration has an advantage over a firm that spends 30%.

Productivity & Efficiency

The amount of output you produce for an hour of work or unit of a resource such as energy.


Your know-how, designs, methods and information capabilities. Includes things like intellectual property, data and the talent of your people.


A large firm tends to have more brand recognition and lower unit costs due to economies of scale. A small firm can typically change more quickly. Generally speaking, a firm that is large enough to achieve significant market share without becoming slow to change has a significant strategic advantage over both the small and the slow.


Capital including things like land, facilities, infrastructure and equipment. For example, a hotel with beachfront access to a popular beach.


Your ability to keep up with the changing values of society and to manage risks to your firm and the greater community.

Strategic Advantage vs Competitive Advantage

Competitive advantage is your ability to outcompete in a market. Strategic advantage is your ability to outcompete more generally including your returns to stakeholders such as investors, employees and communities. As such, strategic advantage is a broader term that includes things like your tax rate and ability to manage risks.
Overview: Strategic Advantage
A position that makes it likely a firm with outperform the competition in the long term.
Related Concepts

Business Strategy

This is the complete list of articles we have written about business strategy.
Added Value
Advertising Strategy
Algorithmic Pricing
Bargaining Power
Bricks And Clicks
Business Development
Business Environment
Business Goals
Business Models
Business Objectives
Business Outcomes
Business Scale
Business Strategy
Business Transformation
Camping Strategy
Channel Strategy
Club Goods
Communication Strategy
Competitive Advantage
Competitive Intelligence
Complementary Goods
Cost Advantage
Cost Reduction
Cost Strategy
Critical Success Factors
Customer Analysis
Customer Service
Cut And Run
Defensive Publication
Designer Label
Digital Maturity
Distinctive Capability
Do Nothing Strategy
Economic Moat
Economies Of Scale
Fail Often
Fail Well
Innovation Culture
Inventive Step
Long Tail
Management Strategy
Market Development
Market Maker
Market Research
Marketing Experimentation
Mass Customization
Operational Efficiency
Plateau Effect
Point Of No Return
Price Discrimination
Price Leadership
Pricing Strategy
Product Strategy
Promotion Strategy
Razor And Blades
Relative Advantage
Resistance To Change
Risk Management
Sales Strategy
Ship Often
Strategic Advantage
Strategic Communication
Strategic Drivers
Strategic Planning
Strategic Vision
Strategy Failure
Strategy Monitoring
Strategy Risk
Target Market
Test Marketing
Trade Dress
Trade Secrets
Turnaround Strategy
Two Sided Market
Types Of Strategy
Voice Of The Customer
If you enjoyed this page, please consider bookmarking Simplicable.

Competitive Advantage

A few sources of competitive advantage for businesses.

Business Strategy

An extensive list of business strategies.

Forward Integration

The definition of forward integration with examples.

Vertical Integration

A complete overview of vertical integration.

Business Problems

An overview of common business problems.


An overview of insourcing with examples.

Strategic Partnerships

The common types of strategic partnership.

Business Improvement

A list of business improvement techniques.

Strategy Planning

A list of strategy planning techniques.


Examples of common business and personal values.

Competitive Advantage

A few sources of competitive advantage for businesses.

Business Value

The definition of business value with examples.

Information Advantage

The definition of information advantage with examples.

SWOT Strengths

An overview of strengths in SWOT analysis with examples.

Competitive Differentiation

An overview of competitive differentiation with examples.

Business Weaknesses

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

Business Strengths

A list of business strengths for brainstorming activities such as swot analysis.

Cost Innovation

The definition of cost innovation with examples.

Customer Value

A complete overview of customer value with examples.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map