When a firm possesses capabilities that allow it to serve customers' needs better than the competition, the firm is said to have a:

A) resource advantage.
B) competitive advantage.
C) value-based advantage.
D) marketing advantage.
E) relative advantage.

Competitive Advantage

An advantage or favorable situation that places a business ahead of its competition in the market.

Resource Advantage

A competitive strategy theory focusing on how organizations can achieve higher performance by acquiring and efficiently using resources to provide greater value than competitors.