Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

What Is Competitive Advantage?

By Sam Swenson, CFA, CPA – Updated Feb 22, 2025 at 11:14AM

Key Points

  • Firms with strong competitive edges excel in cost, differentiation, and customer service.
  • Competitive advantage means producing goods or services more efficiently than rivals.
  • Investors should look for companies with clear competitive advantages for long-term gains.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.