Legal Definitions - competitive advantage

Competitive advantage refers to the advantage a business has over its competitors in terms of information, ideas, or devices that are kept secret and can be used to improve the business's market share or increase its income.

For example, a company that has developed a new technology that is not yet available to its competitors has a competitive advantage. This technology can be used to produce products that are better than those of its competitors, giving the company an edge in the market.

Another example is a business that has a strong brand reputation. Customers are more likely to choose this business over its competitors because they trust the brand and believe that its products or services are of higher quality.

These examples illustrate how having a competitive advantage can help a business succeed in a competitive market. By keeping certain information or ideas secret, a business can differentiate itself from its competitors and attract more customers.