A competitive advantage increases revenue by 30% over the competition or decreases cost by 30%.
Most businesses increase in value as the customer base grows and validates the product/service. Users encourage others to join the platform. This is called Network Effects.
As the number of users grow, so the value of the platform grows as well.
If a business can harness that customer base and turn it into a community that more aggressively attracts other users then it’s a competitive advantage.
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