You have recently started a small business.Your primary competition is much larger and can benefit from economies of scale that keep its costs (and prices)significantly lower than yours.To be competitive,it is important for you to
A)clearly differentiate your product or services.
B)grow so that you can reduce your costs to match those of the competition.
C)keep your workforce wages low to reduce your current costs.
D)There is not enough information to provide an answer.

Question

Quizplus · Accepted Answer

Clear differentiation of your product or service can help you stand out from your larger competitors and attract customers who are willing to pay a higher price for your unique offering. This can also help build a loyal customer base that values your specific product or service over lower-priced alternatives. Growing to match the size of your competition (B) or keeping wages low (C) may not be feasible or sustainable strategies, and may even lead to lower quality products or disgruntled employees. Without more information (D), it is difficult to determine the best course of action, but clear differentiation is a good starting point.

You Have Recently Started a Small Business