Why is it important for a small business to establish a competitive advantage?

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A competitive advantage is defined as a condition or circumstance that allows a company to gain a favorable position over its competitors—this usually occurs when the company is able to offer the same value of goods or services at a lower price or is able to differentiate its goods from those of competitors by increasing their value. In other words, a competitively advantageous company is able to create more economic value for their goods or services. A competitive advantage can also be established by superior customer service, for example, having a policy in place to ship all orders same-day.

Establishing a competitive advantage may be more...

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