Types of Competitive Advantage: Cost, Product, Niche & Sustainable Advantages

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question 1 of 3

Which of the following is an example of competitive advantage?

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1. Thomas owns a large IT company. He attempts to gain an upper hand in the market by using very skilled workers and inexpensive raw materials. Overall, he is very focused on controlling the costs in order to maximize the value of his products to consumers. How is this an example of cost-competitive advantage?

2. Your company offers the best cars on the market at relatively affordable prices. You currently have no competitors regarding the features your cars have. Why is this an example of product differentiation?

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About This Quiz & Worksheet

Test your knowledge of competitive advantage with this quiz/worksheet. It will ask questions about what competitive advantage is and what the different types of competitive advantage are.

Quiz & Worksheet Goals

Students who take this quiz and worksheet will be asked questions on the following:

  • Competitive advantage
  • Cost competitive advantage
  • Product/service differentiation
  • The definition and examples of niche competitive advantage

Skills Practiced

Those who take this quiz will be practicing these skills:

  • Reading comprehension - read and pull the most important information from the related lesson on types of competitive advantage
  • Making connections - use understanding of the different types of competitive advantage to answer questions
  • Defining key concepts - accurately define terms and phrases like competitive advantage and cost competitive advantage
  • Distinguishing differences - compare and contrast the various types of competitive advantage

Additional Learning

For more information, students should look at the accompanying lesson on Types of Competitive Advantage: Cost, Advantage, Product, Niche & Sustainable Advantage. It will help students achieve these goals and objectives:

  • Define competitive advantage
  • Identify the three types of competitive advantage
  • Define many terms related to the three types of competitive advantage including government subsidies and excellent product reliability
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