Importance of Competitive Strategy
Working on the product or service without a proper competitive strategy is not a sustainable way of working as eventually at some point a competitor would start offering same features at a lower cost or offer more features at the same cost. In the race to bring products which meet the customers' needs, the companies devise a lot of strategies in terms of product improvement, pricing, values, benefits etc. but the reality is that the competitors start coming when the market segment becomes lucrative and viable.
At that time, a company needs a well devised competitive strategy to stay a front runner and earn profits. Now to do that a company can do a lot of things. They can offer products which are cheaper than the competitors. They can offer products which provide value which no other competitor is providing. There are 4 types of such competitive strategies which a company can use to gain that edge in the market full of competitors. Hence a well planned competitive strategy is very important to stay strong in the market. There are many types of strategies.
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