Competitive advantage
What Competitive advantage means in Business GCSE, as defined for AQA, OCR, Pearson Edexcel.
Definitions of Competitive advantage
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Reference: AQA
Gained when a USP helps a business differentiate, build customer loyalty and reduce price competition, though it can weaken if competitors imitate it or customer needs change.
Gained through a strong reputation for quality, enabling a business to charge premium prices and build brand loyalty over its rivals.
A unique edge over rivals, such as superior brand loyalty or lower costs, which differentiates the business from rivals.
Gained when customer understanding shows what buyers value, so a business can compete on value rather than just price.
A source of advantage that enables differentiation and potentially higher prices.
A feature of a business that allows it to perform better than others in the same market.
Topics that use Competitive advantage
- Identifying and understanding customers (AQA GCSE)
- The elements of the marketing mix: price, product, promotion and place (4Ps) (AQA GCSE)
- Quality of goods and services (OCR GCSE)
- Managing quality (Pearson Edexcel GCSE)
- Using the marketing mix to make business decisions (Pearson Edexcel GCSE)
Related terms
- Market share
- Target market
- Access to customers
- Adaptation and reaction
- Adaptation to change
- Adapting the mix over time
- Advertising
- Balancing
Using Competitive advantage in the exam
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