What is competitive advantage?
In the world of enterprises, a competitive advantage places an enterprise above its competition. This is true when both enterprises compete over the same market and under the same conditions. However, a competitive advantage doesn't only exist within the enterprise environment but in life itself as we shall see all along this course.
In enterprises, we can define a Competitive Advantage in the following way:
“When two or more enterprises compete over the same market and they provide to the same clients, an enterprise possesses a competitive advantage over its rivals when it persistently gains (or has the potential to gain) a higher benefit rate.”
On the whole, it's all about being different from our competitors and standing out from the rest. Thus, an enterprise is able to place itself in the market, in the mind of every client, displacing its competitors. This is the best way of ensuring clientele and defending from the strength of its competition.
In a heavily saturated market, we have to offer something different to get in. That“something different” will make us the best upon the eyes of clients who choose our products/services. For the enterprises that are already in the market, they need to renovate with that “something different” that makes them better and places them ahead of the rest at the moment the client makes a decision.
More than "renovating or dying", we could say "differentiating or dying".
