How can a company find its way out of a market characterized by pure competition?
A) Consistently offer the lowest price until other competitors leave the market
B) Increase prices and attract different,quality-oriented customers
C) Decrease the amount of available product until the market reacts
D) Increase the amount of available product to flood the market
E) Differentiate the product in some way,even by packaging,so customers will see it as distinct

Question

Quizplus · Accepted Answer

Differentiation is the best strategy in a market characterized by pure competition. By making the product distinct in some way, such as through packaging or features, customers are more likely to choose that product over others, even if the price is slightly higher. This can lead to loyal customers and a higher profit margin. Constantly trying to compete on price alone can lead to a race to the bottom and erode profitability.

How Can a Company Find Its Way Out of a Market