Competitive advantage, as defined by [[Michael Porter]] from [[Harvard Business School]], refers to the unique attributes and capabilities that allow a company to outperform its rivals in the marketplace. It is achieved through either [[cost leadership]], where a company produces goods or services at a lower cost than its competitors, or [[differentiation]], where a company offers unique products or services that are valued by customers. This advantage is sustainable when it is difficult for competitors to replicate or imitate, providing long-term value to the company. Porter emphasizes the importance of strategic positioning and operational [[🔎 Effectiveness]] in achieving and maintaining competitive advantage, which requires aligning a company's activities with its chosen strategy. Ultimately, competitive advantage enables a company to generate superior returns and maintain market leadership over time.