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ways to compete
wider product range
lower prices
better design
higher quality
more convenient locations
strong brand image
better customer service
differentiate products
position their products and target different market segments
gain an advantage over rivals wen faced with competition
why differentiate products
allows consumers to see clearly that their needs are being met more effectively by one product than another
competitive market
there are a larger number of businesses relative to the number of potential customers
competition is also high in markets where businesses sell very similar products and services that are difficult to differentiate
competition and business decision making
improving efficiency
finding ways to improve competitiveness
differentiating products and services
lowering its prices
giving customers special offers
cutting costs
drawbacks of highly competitive markets
lower prices in order to compete
accept lower profit margins
cut back on expenditure
be careful about how and when it expands
monitor its competitiors closely