Competitive: Advantage or benefit?

Abstract

The term ‘competitive advantage’ is used by practitioners and debated amongst academics. This paper argues that it may well be benefit rather than advantage that improves the firm’s competitive position The problems with the notion of competitive advantage are briefly discussed, followed by discussion of the dimensions of value creation. Examining exchange and value as concepts enables this paper to highlight that there might not be such a clear link from providing superior value to creating competitive advantage as has typically been thought. This enables the concept of Competitive Benefit to be highlighted as more related to improving the firm’s competitive position as it is ‘benefit’, along with ‘cost’ that is a driver of value creation. The concept of competitive benefit is explored and a conceptual model put forward as an example of how firms within a value system (supply chain) might map out the beneficial outcomes of their exchange activities. Suggestions are made for further research and a possible contribution to marketing for both academics and practitioners.