price change (is a form of price competition);
production of higher quality vietnam number products (means increasing the differentiation of your product by quality, technical characteristics and other similar features);
a fundamentally new approach to advertising and the entire sales process (increasing product differentiation to increase sales volumes).
The last two strategies are the most widespread and are implemented within the framework of non-price product competition.
Non-price competition strategies
It is important to take into account that price competition is complicated in many ways by product differentiation and the behavioral characteristics of consumers who tend to choose a particular brand (at the same time, by reducing prices it is not always possible to immediately attract a sufficient number of buyers to your side to compensate for the loss).
At the same time, the overcrowding of certain markets affects the distribution of the effect of a single firm's market strategy among a huge number of competitors - it will be so insignificant that other companies will not be able to quickly take action.
Download a useful document on the topic:
Checklist: How to Achieve Your Goals in Negotiations with Clients
Examples of non-price competition
The model of monopolistic competition is most characteristic of the market for various services and the retail sector. If we talk about all sorts of material goods, their production is quite large-scale, so the number and ability to enter the market of producers is limited. Hence the conclusion that the wholesale market for such products is characterized by oligopoly, and the retail market is characterized by monopolistic competition.
Let's look at a few examples of companies to demonstrate non-price competition.
Amazon
Amazon was founded in the United States in 1994. Now it is an international corporation that widely uses the latest technological advances in its activities, including artificial intelligence, cloud computing and e-commerce. Initially, this site was an online bookstore, but as it expanded, it began to offer electronics, programs, clothing, furniture and much more. The secret to Amazon's success is thoughtful work with customers.
Amazon Business Ecosystem
Amazon, in the process of forming its brand, focused on various non-price competition strategies, which focused on other aspects rather than price. This approach contributed to occupying a significant share of the online market. High-quality organized search, formation of offers taking into account previously made purchases, ease of use and a system of reviews and ratings help to stand out from the crowd and gain loyal customers for whom the company's opinion is authoritative.
Also, with the help of the Prime service, Amazon collects all the necessary data about customers: how often they make purchases, what categories of goods they are interested in, what regions they live in. As a result, Amazon gets the opportunity to take into account consumer requests and try out various options for improving the quality of service.