A Comprehensive Literature Review in Competitive Advantages of Businesses

Abstract

The previous studies on the field of competitive advantages of businesses were reviewed. Competitive advantage refers to a set of factors or capabilities that enable the company to demonstrate better performance comparing to the competitors. Totally 59 articles in eight different fields, including strategic management, strategic management of marketing, marketing management, information technology, knowledge management, resources-based theory, entrepreneurship, and human resource management, were reviewed. The results showed that among several available methods, a majority of businesses employ Porter's triple strategies, namely differentiation, centralization, and cost leadership, to gain competitive advantages. Among the triple strategies, the strategy of differentiation has drawn the highest attention and simultaneous utilization of the three strategies is a rare case.