Competitive Advantages: Definition, Types & Examples

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The savvy estimating, separation, marking, advertising, resource, and focusing on procedures make a few brands, items, products and services to be seen as better than others.

These systems lead to a condition of upper hand which causes the business to take into account more-than-normal clients and gain more-than-normal benefits.

We can understand it with the help of a competitive advantage example. Let’s suppose there are 3 organic product vendors selling precisely the same nature of apples close to your home, however, one of them pulls in over half of the clients while the other two simply sit and see the clients purchasing from him.

What could be the key to his prosperity?

In this article, we have added some competitive advantages examples that will help you to understand competitive advantage better.

⦿ Competitive Advantage Definition

Competitive advantage definition tells is an ideal position a business holds in the market which results in more clients and benefits. It is the thing that makes the brand, item, or administration to be seen as better than different contenders.

A brand can make an upper hand in the event that it is clear about these three types of competitive advantage determinants

Target Market

The ideal information of who purchases from the brand, what they want from the brand, and who could begin purchasing from the brand if certain procedures are executed is fundamental for the business to make an upper hand over the contenders.


The business ought to have a response to these two inquiries: Who is the present challenge and who could be a forthcoming challenge in the coming years? What is the creation, evaluating, promoting, and marking systems they’re utilizing to create and showcase their items?


The exceptional selling suggestion is generally the central trigger of the upper hand and isolates the business from the challenge. It is the motivation behind why the clients pick the concerned brand over others.

The USP ought to be obvious to both the business and the clients all together for a brand to make an upper hand.

⦿ Types of Competitive Advantages

Despite the fact that the meaning of upper hand continues as before, various advertisers have expressed various kinds of upper hands.


Creating and Sustaining Superior Performance, which recognized three methodologies that organizations can use to handle rivalry and make an economical upper hand. As indicated by him, these three nonexclusive methodologies are:

Cost Leadership

It is where a business creates an equivalent nature of the item as of the contenders’ nevertheless sells it at a lower cost.

Cost authority is accomplished by persistently improving the operational effectiveness (utilizing less yet progressively productive specialists or redistributing to places where the expenses are less), and getting a preferred position of economies of scale (on account of greater organizations like Aldi, Walmart, and so forth.)


A differential favorable position is a point at which the item or administration offered by the business conveys unexpected advantages in comparison to the items offered by the contenders.

It includes characterizing the offering’s one-of-a-kind situation in the market by clarifying the one-of-a-kind advantage it gives to the objective gathering.

This extraordinary position can allude to the brilliant, better conveyance, more highlights, or some other explicit quality of the item or administration.

Separation is generally accomplished by development and huge advancement, for the most part, bring about the interruption of the business and making a supportable upper hand for the business.

A case of the formation of a differential bit of leeway through interruption is Uber. It separated the administration it was offering by giving it on interest.


Also called the division technique, the center system includes focusing on a pre-characterized portion instead of everybody.

It includes understanding the objective market superior to every other person and utilizes the information for better offering created by the objective market’s needs.

This methodology was at first utilized by independent ventures to rival the huge organizations, yet with the coming of the web and the presentation of microtargeting, even enormous organizations like Amazon, Facebook, and Google which are good examples of competitive advantage do utilize the center procedure to separate themselves from others.

In any case, the cutting-edge upper hands aren’t restricted to these three. A solid brand, huge pockets, organize impact, licenses, and trademarks are not many other upper hand systems organizations use to exceed their rivals.


Brand unwaveringness is one of the greatest upper hands any business can exploit. A powerful brand picture and situating methodology prompt clients getting to be faithful to the brand and notwithstanding paying more than expected to possess the brand’s item.

Apple is an ideal model with regards to the mark-related upper hand.

Effect of network

Some organizations enter the market with gigantic financing and upset the biological system by giving some truly tempting offers or giving the items at truly low costs. This goes about as an upper hand as different organizations regularly neglect to react to such strategies.

System Effect

examples of competitive advantage

The system impact makes the great or administration progressively significant when more individuals use it. For instance, Whatsapp appreciates an upper hand over different players since its clients are hesitant to attempt different applications as a large portion of their contacts use Whatsapp.

Hindrances to Entry and Competition: Businesses regularly utilize characteristic and fake boundaries to section like Government approaches, access to providers, licenses, trademarks, and so forth to prevent others from turning into a nearby challenge.

⦿ Examples of Competitive Advantage


Google appreciates the upper hand of being the main powerful web search tool over the web. The organization had the option to arrive at this tallness in view of its size, development, showcase position, and system impact. This is a really good example of competitive advantages examples.


With its greatest rival, Google also, notwithstanding being near it makes it a good competitive advantage example. Facebook clearly appreciates an upper hand over its rivals.

One of the most compelling motivations is the system impact, yet different reasons which prompted this achievement are steady development, the promotion (free) plan of action, and the customized substance. This is also a great example of competitive advantages examples.

These were 2 competitive advantage examples.

⦿ Competitive Strategies

Competitive strategies are conditions that enable an organization or nation to deliver a decent or administration of equivalent incentive at a lower cost or in a progressively attractive manner. These conditions enable the gainful substance to create more deals or better edges analyzed than its market rivals.

All in All

This was the complete article on competitive advantages in which we explained types of competitive advantage with competitive advantage definition. We also gave some competitive advantages examples in this article as well.

You can look for more examples of competitive advantage in the practical world and you can mention those competitive advantage examples in the comments down below.

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