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

The best choice is to differentiate the product in some way, even by packaging, so customers will see it as distinct. This allows the company to stand out from its competitors and create a unique value proposition for customers. Consistently offering the lowest price may lead to a price war, which can be detrimental to all businesses involved. Increasing or decreasing the amount of available product may not solve the fundamental issue of pure competition. Increasing prices and attracting different, quality-oriented customers is a viable option, but it requires a significant investment in marketing and advertising to reach the desired audience. Differentiating the product is a simpler and more effective approach in the long run.

How Can a Company Find Its Way Out of a Market