Competitive advantage refers to benefits that give an organization an edge over its competitors.

• A. Competitors
• B. Employees
• C. Suppliers
• D. Customers

Answer: (A)

Competitive advantage is the set of benefits that allow a company to outperform other firms in the same market. The key is that the advantage is measured against the competition, i.e., rivals. When a firm can be cheaper, better, or more desirable than rivals, it gains an edge that competitors don’t have. So the correct choice points to the competitors, since they are the entities against which the organization seeks to gain an edge. The other options—employees, suppliers, or customers—describe groups the business interacts with, but they are not the reference point for what makes a company stand out from its rivals.