Finance:Unfair competitive advantage

An unfair competitive advantage, sometimes referred to as an exclusive competitive advantage or unique competitive advantage, provides a degree of certainty for eliminating competition; this is predominantly used in a business environment, however can also be applied in other ways too.

The main point to consider regarding an unfair competitive advantage is that the same opportunities are not available to everyone; unless the possessor of the unfair competitive advantage decides to grant permission for people to share the opportunity. While the origins of the term are unclear, the term is often used by marketing professionals.

This advantage may exist as:

Physical

• infrastructure
• location
• equipment

For example, you own the only land with access to the ocean for a shipping port.

Intellectual/technological

• patents
• trade marks
• brands
• lists
• software
• trade secrets

Human

• skills
• expertise
• knowledge
• linguistic rights
• attitude
• advisers

i.e. only one person (or organisation) in the world has the formulas or "know-how" to do something.

Reputation

• reputation of the product
• reputation of the people, especially those with influence
• reputation of the organisation

i.e. a brand is already recognised as the industry standard or benchmark