The presence of competitors may serve less-attractive segments or lead to more product differentiation.

Question

Quizplus · Accepted Answer

When there are competitors in the same market or industry, companies may choose to focus on serving a different, less-attractive segment of customers rather than directly competing with their rivals. This can result in more market opportunities for all companies involved, increasing product differentiation and overall variety in the market.

The Presence of Competitors May Serve Less-Attractive Segments or Lead