An ability to efficiently allocate capital through an internal market may help the firm protect the competitive advantages it develops through reduced disclosure to outside parties.
A company's ability to produce goods or services faster, more efficiently, or for less money than its competitors is known as a competitive edge. These elements enable the producing unit to outperform its competitors in terms of sales or margins.
For instance, a business is likely to have a competitive advantage if it advertises a product at a lower price than a similar product from a rival. The same holds true if a product is promoted that is more expensive but has special characteristics that people are ready to pay for.
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