What does competitive advantage help a business achieve?

Competitive advantage is a crucial concept in business strategy that allows a company to outperform its rivals in some way. When a business has a competitive advantage, it means that it possesses characteristics or capabilities that give it an edge in the market, whether through unique products, superior service, cost efficiency, or innovative processes.

Setting a business apart from its competitors means it can attract more customers, establish brand loyalty, and ultimately increase its market share. This differentiation can stem from various factors, such as innovative technology, better quality, customer service excellence, or a strong brand reputation.

In contrast, limiting the target audience may restrict market opportunities rather than enhancing them. Increasing market failures is detrimental to a business and does not align with achieving a competitive advantage. Standardizing a product line might not necessarily contribute to standing out in a competitive market, as it can lead to a lack of differentiation. Thus, the correct choice emphasizes the positive impact of competitive advantage on a business's ability to distinguish itself and thrive within its industry.