1. Competitive advantage
Direct Quotes from source: Investopedia, 2016, URL:

2. What is 'Competitive Advantage‘ (1)
Are conditions that allow a company or country to produce a good or service
at a lower price or in a more desirable fashion for customers.
These conditions allow the productive entity to generate more sales or superior margins than its competition.
Competitive advantages are attributed to a variety of factors, including cost structure, brand, quality of product offerings, distribution network, intellectual property and customer support.

3. What is 'Competitive Advantage‘ (2)
Competitive advantages provide an edge over rivals and an ability to generate greater value for a firm and its shareholders.
The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage 中和優勢.
The two main types of competitive advantages are comparative advantage and differential advantage.

4. Comparative advantage比較優勢(1)
Is generated by a firm's ability to produce a good or service at a lower cost than its competitors.
This gives the firm the ability sell its goods or services at a lower price than its competition or to generate a larger margin on sales產生大的銷售利潤.
Rational consumers will choose the cheaper of any two perfect substitutes offered.

5. Comparative advantage (2)
Comparative advantage can be derived from:
economies of scale規模經濟,
more efficient internal systems,
location in geographies with low labor位置在勞動力成本低的地理位置or
low property expenses低物業費.
These do not always imply the company can produce a better product or service, but rather they can offer a product or service for a lower price.

6. Comparative advantage (3)
Amazon.com Inc. is an example of a company focused on
building and maintaining comparative advantage比較優勢.
The e-commerce platform, its vendor relationship and its shipping network provide a level of scale and efficiency that is difficult for retail competitors to replicate.
Amazon has risen to prominence largely through price competition主要通過價格競爭突出.

7. differential advantage差異優勢(1)
Is created when a firm's products or services differ from its competitors and are seen as superior than a competitive offering.
Differential advantages can be driven by:
more advanced technology,
patent-protected專利保護products or processes,
superior personnel, or
a strong brand identity強大的品牌認同感.

8. differential advantage差異優勢(2)
Apple Inc. is famous for creating:
innovative products like the iPhone and
supporting their market leadership with savvy marketing campaigns精明的營銷活動to build an elite brand精英品牌.
Major drug companies can also market branded drugs at high price points due to patent protection.
Other: Starbucks, Prada, LV, Rolex, Bentley Bentayga, etc.

9. Intellectual property (IP)
DIRECT QUOTES from Source:
“IP is a fairly nuanced concept, encompassing several different types of ideas. The easiest way to classify these different types of IP is to consider them by the methods for registering them.
What Is Copyright? - Copyright protects creative works in a tangible form; this includes books, movies, music, games, artwork, and other kinds of creative products.
What Is a Trademark or a Service Mark? A trademark, another common type of IP, is registered with the United States Patent and Trademark Office (USPTO) as a mark that distinguishes the source of goods or services. Trademarks are an interestingly broad example of intellectual property. A trademark can be anything that differentiates a particular company from its competitors, including: A logo, A slogan, A sound, A color
What Is a Patent? Patents are special forms of IP registered with the USPTO; they protect inventions and functional designs for products. In exchange for publicly disclosing the invention or design, the inventor gains exclusive rights to the use of the patented device for a set amount of time .....”

10. Distribution network What is a 'Distribution Network'
DIRECT QUOTES from Source:
What is a 'Distribution Network'
A distribution network is an interrelated arrangement of people, storage facilities and transportation systems that moves goods and services from producers to consumers.
Read more: Distribution Network