Define competitive advantage

Define the term 'competitive advantage'. (2 marks)

Mark scheme (2 marks):

• 1 mark for identifying it as something that allows a business to outperform rivals / be chosen over competitors.
• 1 mark for development — e.g. through lower price, better quality, stronger brand, unique product or superior customer service — that is sustainable over time.
• Example of a 2-mark answer: "A competitive advantage is a feature that allows a business to perform better than its rivals (1), for example offering a lower price or higher quality so customers choose it instead of competitors (1)."