central purpose to business activity

competitive advantage

refers to the advantage a firm has over its competitors, which allows it to attract and retain more customers than its rivals and therefore generate greater sales and profit. it can be achieved through either a cost advantage or through differentiation advantage

two approaches to competitive advantage

cost advantage and differentiation advantage

cost advantage

refers to the advantage that a firm has over its competitors which allows it to produce a good or service at a lower cost than its rivals. if a firm has a cost advantage then it will be able to sell its output at a lower price that its main competitors and so be able yo gain a large share of the market

how to achieve competitive advantage

economies of scale

technology

using cheaper social media methods.