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Cost advantage and differentiation advantage. A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost(cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage). Therefor a competitive advantage enables the firm to create superior value for its customers and superior profits for its self.
Cost and differentiation advantages are known as positional advantages since they describe the firm position in the industry as a leader in either cost or differentiation.
A resource-based view emphasises that a firm utilises its resources and capabilities to create a competitive advantage that ultimately results in superior value creation...
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