The chapter discusses the concept of competitive advantage, defined as a company's ability to outperform its competitors by creating more economic value in the same market. Michael Porter (1985, 1989) emphasizes the importance of building and sustaining competitive advantage through two main strategies: cost advantage and differentiation advantage. Cost advantage involves achieving lower costs than competitors, while differentiation advantage focuses on providing better products or services. Porter also outlines three generic strategies: cost leadership, differentiation, and focus (both cost focus and differentiation focus). Each strategy has specific goals and implementation methods. Additionally, the Blue Ocean Strategy (BOS) is introduced, which advocates creating uncontested market spaces by breaking the value/cost trade-off, achieving both differentiation and low costs simultaneously. This strategy aims to attract customers immediately and ensure profitable, non-imitable growth.The chapter discusses the concept of competitive advantage, defined as a company's ability to outperform its competitors by creating more economic value in the same market. Michael Porter (1985, 1989) emphasizes the importance of building and sustaining competitive advantage through two main strategies: cost advantage and differentiation advantage. Cost advantage involves achieving lower costs than competitors, while differentiation advantage focuses on providing better products or services. Porter also outlines three generic strategies: cost leadership, differentiation, and focus (both cost focus and differentiation focus). Each strategy has specific goals and implementation methods. Additionally, the Blue Ocean Strategy (BOS) is introduced, which advocates creating uncontested market spaces by breaking the value/cost trade-off, achieving both differentiation and low costs simultaneously. This strategy aims to attract customers immediately and ensure profitable, non-imitable growth.