Competitive strategy is about building and defending advantages that competitors cannot easily replicate. Michael Porter identified three generic strategies: cost leadership, differentiation, and focus. Warren Buffett popularized the concept of economic moats - durable competitive advantages that protect profits.

Sustainable advantages come from network effects, switching costs, brand equity, scale economies, unique resources, and proprietary technology. But advantages erode over time. New entrants disrupt. Competitors imitate. Customer preferences shift. The best strategists constantly reinforce their moats while watching for threats.

In this topic, you will learn to identify, build, and defend competitive advantages. You will understand positioning, differentiation, and the strategic choices that determine who wins in competitive markets.