Examples of competitive advantage

competitive advantage examplesCompetitive advantage is the source by means of which the company acquires a position superior to the rest of the competitors of the market, allowing it to assure its profitability and survival.

Michael Porter defends 2 basic strategies as a source to develop the competitive advantage of any company, cost leadership and differentiation.

Below you can find examples of competitive advantage of globally known companies, in these examples we will analyze the pillars that support this advantage.

Competitive advantage of Apple

Apple is a recognized technology company that designs and produces electronic products and software worldwide known as iPhone, iPad, iTunes or its operating systems like macOS or iOS.

Apple is a clear example of the dominant company in the technology market achieved this position through the competitive advantage of differentiation, from its origins and over time Apple has achieved this competitive advantage thanks to its brand image, its unique ecosystem, its character and capacity innovative ...

Brand image

Apple is a globally known company whose strength brand gives it great visibility in all markets reaching new customers without major investments in advertising. The latest studies indicate how the Apple brand far exceeds global brands such as Coca-Cola, Google, Ford ... this excellent brand image allows you to retain and attract new customers. Currently, there is no technological company with this brand image on the market, making Apple a different company from the rest of its competitors.

Unique ecosystem

One of the keys to Apple's success is its ecosystem, through which all the products they design are focused on the software that governs it, optimizing it to the maximum and allowing a fast and fluid communication between all its products. This unique ecosystem makes Apple different from the rest of the competitors in a key aspect for the proper functioning and safety of any electronic device


Apple has been defined from its origins as an innovative company, which invests large amounts of money in market research to detect future needs of its customers as well as in the development of new products or new functionalities. The iPod or the iMac are clear examples of innovative products, as well as the brand image together with the innovative different developments that make new electronic devices that have not been accepted by consumers a success in the hand of Apple as the iPhone within smartphones, Apple Watch within the field of smartwatches ...

High value added

For all the aspects mentioned above together with a selection of balanced materials and a high quality in their production processes both hardware and software make Apple customers perceive their different products and with a high added value of the rest of the competitors, allowing to put higher prices on products similar to those of the competition.

With all this we can appreciate how the strategy of differentiation has allowed Apple to reach its competitive advantage, applying this differentiation even in its famous slogan "Think different”

Competitive advantage of Ryanair

Ryanair is an Irish airline leader in the passenger air transport sector in Europe, becoming the most profitable airline on the planet.

Ryanair is a clear example of a dominant company in its sector, thanks to the strategy of cost leadership as a source of its competitive advantage that has allowed it to offer the best prices while obtaining returns for its activity.

Ryanair has focused all its efforts on reducing the cost of all its activities, as well as maximizing all the resources available to the company, strictly monitoring and controlling the cost. Among the different actions that have been carried out to achieve this competitive advantage we can mention;

Power of negotiation with suppliers and standardization of the product.

Ryanair has a fleet of aircraft of the same model Boeing 737-800, making purchases in large lots which allows you to better negotiate and adapt the aircraft to your needs, obtaining a very competitive purchase price.

Likewise, having a standardized product allows all maintenance operations, pilot training and knowledge of the product to be reduced exponentially by experience.

Cost reduction and optimization of resources

The completion of the Check in by the passenger allows Ryanair to eliminate the cost of both staff and rental of the counter and associated services at the airport.

The sale of your tickets online as the only channel, allows you to centralize and optimize all sales management in a single plant, saving both personnel and facilities costs.

Ryanair aircraft are flying as long as possible, optimizing the use of airplanes to the maximum and reducing the death times of their fleet, reaching high rates of productivity.

The services offered are simple and adjusted to the maximum for the price paid, any extra as the selection of seats, embarking before or any refreshment have a price associated with paying for the client.

The airports in which they operate are usually located in secondary towns in the main cities, paying less for the use of these secondary airports and offering additional services such as car rental.

Strict cost controls

The boarding staff of Ryanair performs strict control over the boarding elements in such a way that any anomaly is made known to the customer to pay the corresponding price.

The routes are studied and optimized to the maximum, controlling the cost of all and eliminating those that do not reach the desired profitability.

The motto of the company itself has been for years the price, the price and the price, promoting a culture of cost control through which they can offer the best possible price.

With the passage of time and thanks to its leadership in cost Ryanair has managed to change the air transport model that was reserved its frequent use to people with certain purchasing power or business issues to a total access of anyone wishing to travel to a European city, in exchange for the comforts and services offered by traditional companies.


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Competitive advantage example