Define the term ‘competitive advantage’. (Extract A, line 5)

Competitive advantage refers to the ability of a company or organization to outperform its competitors. This can be achieved through gaining access to resources or capabilities that others do not have, or by developing existing capabilities to a higher level than competitors. This advantage allows the company to generate greater sales or margins and/or retain more customers than its competition. It can be the result of a number of factors such as superior product offering, advanced manufacturing capabilities, network effects, strong brand, etc.