Why is competitive advantage critical in international business?

Competitive advantage is critical in international business because it enables a company to outperform its competitors in the market. When a company possesses unique resources, capabilities, or positioning that differentiates it from others, it can provide greater value to customers. This could be through offering higher quality products, more innovative features, or lower prices. By leveraging competitive advantages, companies can capture a larger market share, improve profitability, and ensure long-term success in the global marketplace.

In the context of international trade, maintaining a competitive edge can be particularly challenging due to varying market conditions, regulations, and consumer preferences across different countries. Therefore, companies that effectively identify and exploit their competitive advantages are better positioned to navigate these complexities and thrive globally.