Distribution Cost Advantage

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Distribution Cost Advantage

A source of competitive advantage that depends on the efficient delivery of a product or service to customers.

Distribution Cost Advantage

A comparative advantage that one company has over another because of its ability to deliver goods or services more quickly and less expensively. For example, a flower delivery service in the town where the order was placed has a distribution cost advantage over an identical service out of state, as it can deliver flowers more quickly and cheaply.
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They have certain customer base and distribution cost advantages that can be exploited to gain market share at the expense of traditional insurers.
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