How do nearby businesses with similar products usually compete?
E offering deals and low prices
A changing to different product types
B lowering the level of service to save costs
C establishing a minimum price for everyone to use
The most common way for nearby businesses with similar products to compete is by offering deals and low prices (option E). By providing discounts, sales, or competitive pricing, businesses aim to attract customers and increase their market share. This strategy allows them to differentiate themselves from competitors and develop a customer base.
Changing to different product types (option A) could be a strategy but it is not necessarily a common approach for businesses to compete with nearby competitors. This tactic generally implies shifting away from the overlapping product range to focus on a different market segment or offering a new type of product altogether.
Lowering the level of service to save costs (option B) is considered an ineffective approach to competitiveness. Customer service plays a crucial role in attracting and retaining customers, and reducing the quality of service is likely to have a negative impact on business reputation and customer satisfaction.
Establishing a minimum price for everyone to use (option C) is not a common approach for businesses with similar products to compete. It would involve collaboration and agreement among competitors, which raises antitrust concerns. Moreover, competing solely on price is not always the most effective strategy, as it may lead to a race to the bottom, reducing profitability for all businesses involved.