Differences between price and non-price competition
Posted: Sun Dec 15, 2024 7:15 am
As already noted, there are essentially two types of economic rivalry. Price competition is most appropriate in the following circumstances:
high level of demand;
the presence on the market of many manufacturers offering identical products;
the impossibility of qualitatively improving the product or the costliness of such a method.
Dumping as a temporary measure is used quite often, since it is easy to expand the controlled market share. This strategy is especially suitable for new companies that want to strengthen their positions as quickly as possible. The effectiveness of this method is high, but there are also disadvantages: lowering the price means reducing your own profit, and losing in price competition will bring direct losses. Therefore, you should approach the unleashing of a price war korean girls numbers whatsapp with extreme caution, realistically assessing your own capabilities.
The use of non-price competition requires great organizational efforts, but the result, if successful, can exceed all expectations.
The main options that can be bet on are the creation of a unique product with outstanding characteristics, brand promotion, an emphasis on environmental friendliness and safety, design, additional service offers, etc.
Source: shutterstock.com
Depending on which means play a key role in achieving superiority over rivals, non-price competition may include the following elements:
introduction of technological innovations that expand the useful properties of the product;
ensuring higher quality by switching to other raw materials, changing the production process, etc.;
active advertising promoting a brand or a specific product;
expansion of warranty and post-warranty service.
As modern business practice shows, non-price competition is preferable for microenterprises, since it allows them to compete on equal terms even with large manufacturers in a given industry. In price wars, more financially stable organizations usually win.
high level of demand;
the presence on the market of many manufacturers offering identical products;
the impossibility of qualitatively improving the product or the costliness of such a method.
Dumping as a temporary measure is used quite often, since it is easy to expand the controlled market share. This strategy is especially suitable for new companies that want to strengthen their positions as quickly as possible. The effectiveness of this method is high, but there are also disadvantages: lowering the price means reducing your own profit, and losing in price competition will bring direct losses. Therefore, you should approach the unleashing of a price war korean girls numbers whatsapp with extreme caution, realistically assessing your own capabilities.
The use of non-price competition requires great organizational efforts, but the result, if successful, can exceed all expectations.
The main options that can be bet on are the creation of a unique product with outstanding characteristics, brand promotion, an emphasis on environmental friendliness and safety, design, additional service offers, etc.
Source: shutterstock.com
Depending on which means play a key role in achieving superiority over rivals, non-price competition may include the following elements:
introduction of technological innovations that expand the useful properties of the product;
ensuring higher quality by switching to other raw materials, changing the production process, etc.;
active advertising promoting a brand or a specific product;
expansion of warranty and post-warranty service.
As modern business practice shows, non-price competition is preferable for microenterprises, since it allows them to compete on equal terms even with large manufacturers in a given industry. In price wars, more financially stable organizations usually win.