ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Competition in business decreases an individual companies market share and shrinks the available customer base, especially if demand is limited. A competitive market can also force lower prices to stay competitive, decreasing profit margins for each sale or service. An extreme example is a Flooded Market.
Detailed explanation-2: -One of the most famous competitive collaborations is Microsoft and Intel. They created Wintel Alliance, in which Intel worked on hardware, and Microsoft created the software.
Detailed explanation-3: -Our research indicates there are six primary ways to differentiate, including product, service, channels of distribution, relationships, reputation/image, and price.
Detailed explanation-4: -Factors to be considered when exchanging or sharing information. While companies may seek to exchange or share information for legitimate business reasons, any exchange of commercially sensitive information between competitors is likely to interfere with the normal conditions of competition in a particular market.