A company's competitive strategy is a combination of its goods or services with its competitive advantage.
Competitive advantage refers to factors which allow a company to produce goods or services better or more cheaply than its rivals. This allows producers to generate more sales or superior margins compared to its market rivals.
A firm's ability in order to produce a good or service more efficiently than its competitors, leads to greater profit margins, and thus creates a comparative advantage for the firm.
Hence, a competitive advantage enables a company to perform better than its competitors.
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