Competitive advantage is the superiority of a company that enables it to deliver a project, product or service at a lower cost, better quality, or in a manner that markets perceive as superior to that of competitors. It is the competencies and capabilities that a company can leverage to offer higher value by matching them to market opportunities when presented. Simply stated, it is what makes a company better than its competitors in the minds of customers and it is a key goal of business strategies and new business development to win bids and be more profitable than competitors. Sustainable competitive advantages are the unique, quantifiable, and substantial resources, assets, and capabilities that give a company an advantageous position over the long run and are difficult to duplicate. Sustainable competitive advantage is a short‐term occurrence that may be replicated a number of times, but which is very difficult to maintain over long periods.
Competitive advantage is an important consideration in the business development and project finance disciplines because: