What are factors that allow a company to distinguish its product or service from competitors called?

The term that describes factors allowing a company to distinguish its product or service from competitors is known as Competitive Advantage. This concept refers to the unique attributes or benefits that a company offers, which can make its product more desirable to customers compared to similar offerings from other companies. Competitive advantages can stem from various sources, including better quality, lower prices, superior service, or innovative features, and they help an organization carve out a more favorable position in the marketplace.

Operational Efficiency focuses on maximizing outputs while minimizing inputs, but it doesn't directly address how to differentiate a product or service from competitors. Market Segmentation involves dividing a larger market into smaller segments based on shared characteristics or needs, which can aid in targeted marketing strategies but doesn't itself serve as a distinguishing factor. Strategic Alignment refers to ensuring that various aspects of a business (such as resources and initiatives) are in sync with its overall strategy but, again, does not specifically highlight unique differentiators for products or services.

Thus, competitive advantage is the core term that encapsulates the idea of distinguishing factors that enable a firm to succeed against its competitors.