competitive advantage
What competitive advantage means in Business A-Level, as defined for AQA.
Definitions of competitive advantage
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain competitive advantage in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
Gained when financial decisions fund strategies such as lowering unit costs to undercut rivals or creating a unique offering for which customers pay a premium.
An edge over rivals that customers pay for and that rivals cannot copy quickly, turning into a financial effect.
Topics that use competitive advantage
- Financial management (AQA A-Level)
- Strategic positioning: choosing how to compete (AQA A-Level)
Related terms
- budgets and trade offs
- cost leadership
- crowd funding
- differentiation
- environmental investment
- equity crowd funding
- erosion of advantage
- Ethical, environmental and technological influences
Using competitive advantage in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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