From a financial perspective we can state that competitive advantage exists when the global sales turnover of a company is greater than the sum of its costs, including those of the opportunity of capital.
Competitive advantage can be achieved in different ways, by selling a product or service that customers perceive as possessing superior value, therefore the supplier is able to set a premium price, but, competitive advantage can also be achieved by lowering the costs in relation to the direct competition.
The challenging question is the following, which approach impacts most in value creation ?