A competitive advantage can be defined as, any factor that allows an organization to differentiate its product or service from those of its competitors to increase market share. All businesses have different strengths and weaknesses. For a business to be successful it must determine what it s strengths and weaknesses are, and utilize it s strengths. There are many different ways for a company to gain competitive advantage.
Businesses can have a cost leadership advantage, which is that business has a cost advantage.
Wal-Mart is often associated with this type of an advantage. Because price is the main competitive advantage that Wal-Mart utilizes. Wal-Marts slogan is, Always the Lowest Price. Most of the time Wal-Mart will have the lowest price the goods that are found in their store. Wal-Mart has been very successful with using the lowest price idea.