What defines a product's competitive advantage?

The competitive advantage of a product is primarily defined by the unique differences it has in comparison to its competitors' offerings. This can encompass various aspects such as superior quality, innovative features, exceptional customer service, or distinguishing brand identity. These unique traits allow a product to stand out in the marketplace, making it more attractive to consumers compared to similar products.

Focusing solely on pricing, while relevant, doesn't necessarily capture the essence of competitive advantage. A lower price might attract customers but does not guarantee differentiation in value or quality. Likewise, merely having new features doesn't ensure a competitive edge unless those features are valuable to customers and set the product apart significantly from existing alternatives. Additionally, availability in different markets plays a role in accessibility but does not inherently define how a product compares in terms of quality, function, or brand perception against its competitors. Thus, having unique differences is essential for establishing a sustainable competitive advantage in any market.