What is Competitive Advantage? Definition & Meaning of Competitive Advantage in Business – Animated

What is  Competitive Advantage? Definition & Meaning of Competitive Advantage in Business – Animated

– [Shaf] Want to talk the
talk when it comes to business but you don’t quite have the know-how? You’ve come to the right place! My series “Speak Like Shaf”
will explain all those confusing business terms and will
make you feel more confident and self-assured when you’re using them. Today we are going to look at what competitive advantage means. Put simply, competitive
advantage is the condition that enables a company to
do better than its rivals. The sporting world
provides a great analogy. Serena Williams has won
a whopping 23 Grand Slam singles titles and has dominated the game. But what gave her the
edge over her rivals? More than anything, it
was her will to win. To win once is an achievement
but to do it time after time takes incredible mental strength. Talking of strength, she was more powerful and more accurate than her rivals. This would have counted for nothing if she wasn’t dedicated though, and she got up morning after morning, year after year to practise at 6am. All of these qualities combined to give her a competitive advantage. She even won the Australian
Open when she was pregnant, now that does make her a superwoman! Sprinter Usain Bolt’s long
legs gave him an advantage, swimmer Michael Phelps’
big feet helped him succeed but, just like Serena, these advantages wouldn’t count for anything
if they didn’t dedicate their lives to their sport and have the determination to win. People in business could learn
a thing or two from them. You can have all the talent in the world but unless you are willing
to put in the hard graft, you won’t realise your, and
your company’s, true potential. A business can get competitive advantage by producing superior
products, lower pricing, better technology and a
more dynamic workforce. In previous vlogs, we’ve met
the world’s first entrepreneur. Rab The Rock Star was a Stone Age man who set up a business
making and selling tools for hunting animals. You see, Rab was a rubbish hunter but a brilliant businessman. He couldn’t catch a deer to save his life but his spears, bows
and arrows did the trick for his neighbours and friends. Before long, Rab’s business grew and he started employing people. It wasn’t just his business that grew, his success inspired some
rivals to set up too. But Rab’s designs gave him
a competitive advantage because they were far superior than anything else that was available. He was able to produce more
and sell them at a better price so his profit margins were better. And because he was the
first company to do this, he was trusted by his customers and they stayed loyal to him. All of these factors meant he had a competitive advantage over his rivals. So if you’re starting out, think about what could set you apart and give you an advantage. Is it your product, your
service, your price? Like Rab The Rock Star
and athletes Serena, Usain and Michael, you could
be in a league of your own. Let me know what you think
and don’t forget to subscribe to my YouTube channel,
it won’t cost you a penny and you can discover my
competitive advantages over my business rivals! (bright music)

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About the Author: Oren Garnes

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