What term describes an advantage a business has that enables it to perform better than its rivals?

The term that best describes an advantage a business has that enables it to perform better than its rivals is "Competitive Advantage." This concept refers to the attributes that allow an organization to outperform its competitors in the market, which can come from various sources such as superior product quality, innovative technology, strong brand loyalty, cost leadership, or effective distribution networks. Having a competitive advantage means that a business can sustain profitability and market share more effectively than its competitors, making it a crucial element in strategic planning.

Unique Selling Point may refer to a specific feature or benefit of a product that sets it apart from others, but it does not encompass the broader idea of overall competitive superiority. A franchisee is a business entity that operates a franchise, which doesn't inherently relate to competitive advantage. Risk refers to the potential negative outcomes a business might face and does not pertain to the advantages a business might have in its competitive landscape.