Company Valuation: Competitive Advantage
Competitive Advantage
A company may have a very strong product, but without a competitive advantage, that product will quickly become obsolete.
A competitive advantage is what makes a specific company better than its competitors and a profitable long-term investment. This can come in the form of the products they provide, as well as the company’s marketing, promotion, packaging, and service divisions. A company must have a competitive advantage to be successful and to have a good company valuation.