These are the four factors that create competitive advantage.
Efficiency is the relationship between inputs and outputs, and superior efficiency leads to lower costs which
leads to higher profitability and competitive advantage.
A product has superior quality when its customers consider that its attributes give them higher utility than do
the attributes of competing products.
Innovation in products and processes is perhaps the most important component of competitive advantage,
because competition is driven by innovation.
Superior responsiveness to customers means the company does a better job than its competition of
identifying customer needs and satisfying them.