Google Docs have a biggest competitive advantage, it is seamless real-time collaboration feature. It allows multiple users to work on the same document at any one time, with changes reflected live across screens. This is really valuable for me, since I've worked on group projects where people were in different time zones and forwarded unrevised versions of a document over email. In the words of one reviewer: “Google Docs is the gold standard for document collaboration and sharing. Being able to see who is editing what and the built-in chat and commenting makes it truly a collaboration machine!”
No more frantically hitting "Ctrl+S," no more lost hours of work from a crash. Google Docs automatically saves all changes made to your document the time you write them. Which has lost me hours of work due to a blue screen/freezing etc, unlike other writing programs. Just the ability to do this makes Google Docs worth it.
Google Docs is completely free for individual users, and your data includes 15 GB of cloud storage on Google Drive. One biz user, for example, said: "It has most of the major features that are present in MS Office 365 without costing a subscription price." This is a great benefit for students, freelancers and cost-aware small teams.
Google Docs serves text editing, but with regards to advanced formatting can seem more limited than Microsoft Word. As a word processor it does not have all of the cool features that Word has. Some of the features that yielded complex tables.