Competitive advantage refers to the attributes or conditions that allow a company to produce goods or services better or more cheaply than its competitors, leading to greater profit margins or market share. This advantage can arise from various factors, including superior product quality, cost leadership, innovation, brand reputation, customer service, and more. Companies with a strong competitive advantage can sustain profitability in the long term by effectively differentiating themselves in the market. Maintaining competitive advantage often requires continuous innovation, adaptation to market changes, and strategic resource allocation.