Which statement best defines competitive advantage?

• A. When a firm achieves low-cost status only
• B. When a firm replicates competitors' strategies quickly
• C. When a firm implements a strategy that creates superior value for customers AND that its competitors are unable to duplicate
• D. When a firm increases product variety without regard to customer needs

Answer: (C)

Competitive advantage comes from delivering superior value to customers in a way that rivals cannot easily imitate. The best statement captures both parts: it describes creating value that customers prefer and that competitors are unable to duplicate. When value is high and hard to copy, the firm enjoys a sustained edge over competitors. Focusing only on being low-cost can be matched by others, and adding products without aligning to customer needs may dilute value or fail to create a real advantage. Simply copying what competitors do rarely yields a lasting separation in the market.