IKEA’s Main Sources of Competitive Advantage : Lower Prices: Lower prices are the leading source of competitive … Like with most e-commerce strategies, there are advantages and disadvantages to it. Advantages of Penetration Pricing. Penetration pricing can be effective when there are many competitors, it is designed for a mass market, or economies of scale are possible (such as with Costco in the organic foods example). So, competitive pricing is a game to play. A competitive advantage is a capability or position that allows you to outperform competitors. McDonald’s core competency is providing convenience when people need and want to eat fast food at prices that are competitive and provide best value for the customer's money.One of McDonald’s competitive advantages is its focus on consistency of quality, production of food and use of raw materials all around the world. Here are the top advantages of adopting a competitive pricing strategy: Pricing Strategy Is More Efficient – You can easily combine a competition-based pricing strategy with other pricing strategies and this makes the final prices of the products or services much more efficient. It is impossible to get the pricing data of the competitors manually. The product element in this study explained 46% of the changes in competitive advantage for the SME sector in Al Buraimi. There are many companies that price in such a way to maximize profit, not volume. Let’s take a look at advantages, disadvantages & overview of competitor based pricing. This is an example of four stores that implement this strategy. One such company is Fitbit. This quickly becomes unprofitable, particularly if the competition have lower costs. Competitive pricing is used by virtually every player on the market. It has to use non-price methods to compete – e.g. The average positioning where most competitors are clustered, The highest price positioning where luxury brands are clustered. Promotional efforts stimulate interest among customers new and established. It is a powerful strategy that is used by the retailers to set pricing for the product on par with competitor prices. A strong brand, big pockets, network effect, patents, and trademarks are few other competitive advantage strategies businesses use to outdo their competitors.. Advantages of Penetration Pricing. Pursuing competitive pricing doesn’t mean fixing prices to a competitor’s. If you are selling luxurious products for affluent customers, you must set the best price against your competitors. When you price a product as per the competition, then it is known as competitive pricing. The strategy related to competitive pricing which may also be called the strategy of market-oriented pricing is such an approach where different online retailers are setting their prices online which are based on certain competition. This allows a company to achieve superior margins Operating Margin Operating margin is equal to operating income divided by revenue. Image: Advantages and Disadvantages of Penetration Pricing Penetration pricing stimulates the market growth and capture market share by deliberately offering products at low prices. When the favourable competitive advantages last for many years, then they are known as sustainable competitive advantages. What is a Competitive Advantage? But here we've listed 6 repricing scenarios that will make your life much easier. This $600 will be the price floor. In highly competitive and price-sensitive markets, putting your customer’s perceived value first gives you an edge in customer loyalty and satisfaction. On the flip side, if the retailers want to improve the sales for the products, they must set a lower price for the product than their competitors. In this type of pricing strategy, a firm adds a given percentage (know as the mark up) to what it costs them to make a product, and sells it for this price. A Wall Street Journal story reported that online prices for everything from white goods to children’s clothing to consumer electronics to … Competition based pricing is a pricing method that involves setting your prices in relation to the prices of your competitors. Competitive pricing is the process of selecting strategic price points to best take advantage of a product or service based market relative to competition. Competitive pricing intelligence demands that you have in-depth knowledge of your market and target audience. over the market and raise prices to a level that will provide a high profit margin. Unlike sellers in a perfectly competitive market, a monopolist exercises substantial control over the market price of a commodity/product. This means $500 + 100 (20% * $500) or $600. When you target high-end customers and offer premium products, it’s better to price above competitors. There are a number of specific competitive pricing models—some simple and some complex. Very basically, competitive pricing strategy, also known market-oriented pricing strategy, is an approach in which e-commerce retailers set their online prices based on competition (competitors… This is done by preventing the loss of market share and a number of customers are also presented in the same way so they do not go to other companies to buy their products. Disadvantages include that businesses have to attract customers in other ways, since the price will not grab the customer’s interest. In other words, firms that have no advantages can only compete on price. Learn more->, Competitive Pricing: Definition, Advantages & Disadvantages. Competitive advantages are commonly split into comparative and differential advantages. You can easily penetrate the market. Now, the brands became popular in the market. Don't make these mistakes, and you'll sell more in the future. In other words, you’d lose sales. It creates a pricing advantage compared to the competition. Some companies either provide a few services for free or they keep a low price for their products for a limited period that is for a few months. To set the price, the retailer must gather information about the competitors and their product prices, as the price of the product is continuously changing. This shows the importance of competitive pricing … When promoting prestige in your brand and products, higher price points exudes exclusivity and grandeur. The price system and I assume you mean the free price system, is very important in an economy. I mentioned before that the wrong pricing strategy can translate to either loss of revenue or loss of reputation. But not everyone wants to position as the cheapest. Competitive pricing is the process of selecting strategic price points to best take advantage of a product or service based market relative to competition. Competitive pricing offers several advantages. Walmart, Apple and Google. For instance, there might be the following disadvantages associated with this approach: The decision to rely only on the competitor pricing might lead to … This aims at maximizing profits through effecting maximum sales with a low margin of profit. The competition would define the price of the product. But if you want to target a large audience, you must offer competitive prices. There are various types of strategies companies use to determine their budgeting for marketing and promotional activities. A brand can create a competitive advantage if it is clear about these three determinants: 1. Using a price tracking and dynamic pricing tool, you can opt for: So the dynamic pricing rules you set determine where you’re positioned against competitors. Learn more->, Price comparison is a part of the consumer journey you should be aware of. Shopify price experimentations are a great way to test product pricing and see if you can find a better revenue generator. We understand that competitive pricing seems confusing, yet it meets the needs of online retailers. Psychological Pricing Strategy Tactics. That makes it more tempting to go through with the purchase. If you’re ready, let’s break down what competitive pricing is, explain it with a real-life example, and discuss the benefits and drawbacks in the FAQ section. The premium pricing means setting the price of products high. 5. The competitive intelligence you’ll gather will reveal competitor strategies, which will help you make better decisions in the long term. However, first understand some of the pricing basics: It’s about profit, not volume. Companies do not need market data that is as accurate as demand-based pricing or customer value pricing. Another good example of comparative advantage is when firms achieve economies of scale after an expansion which can allow them to lower their prices since they buy raw materials at a lower price. Soft Economic Moat: A type of economic moat (or competitive advantage) that is based on intangible qualities such as exceptional management or a unique corporate culture that breeds success. The person can set a lesser price than the market price or set average pricing for the product or high pricing depending on the product. It is used as a competitive weapon to gain market position. What’s the worst thing that could happen if you ignored competitor prices? In a free price … Product Codes: GTIN, UPC, EAN, JAN, ASIN – Which One To Use? China can do this because its standard of living is lower, meaning it can pay its workers less. Advantages of Value-based Pricing 1. Today, competitor pricing is taken into consideration to decide the appropriate pricing for a product. This is compared to other strategies like value-based pricing or cost-plus pricing, where prices are determined by analyzing other factors like consumer demand or … Advantages of competitive pricing; Disadvantages of competitive pricing; The importance of fresh data & price monitoring services; Questions from participants on this topic; Additional Information. These points will help you set the best price that is feasible for your business. This strategy is used by the companies only in order to set up their customer base in a particular market. Cost-Based Pricing – Meaning, Types, Advantages and More Cost-Based pricing (or the mark-up pricing) as the name suggests, is a method to set the price of the goods or services based on the cost. The spending on promotion and brand presence will be at par as planned by our competitors. With this webinar ,we're determined to help you to optimize your competitive pricing strategy by weighing down the advantages and disadvantages of a competitive pricing strategy. Price Analysis – Learn to Analyse Your E-commerce Pricing Data Effectively, Price Escalation – What Retailers Need To Know. What are some disadvantages of competitive pricing? This guarantees our customers a reliable and professional business partner in fuelling. Learn more->, Repricing strategies might seem complex at first sight. For the compulsive purchaser, that is enough to win a sale. Can’t you just price your products based on costs and target profit margins? This is pricing that varies in real-time to reflect on-going shifts in buying patterns, competitive pricing and contextual factors, and it is the coming thing in all categories. This is the main reason why retailers will track the pricing of competitors to stay competitive. ( P r o d u c t i o n P r i c e 100 ) ( 100 + M a r k u p ) {\displaystyle ({\frac {Production~Price}{100}})(100+Mark~up)} For example, if a firm was making pens at a cost $2 per pen, and they wanted to make 25% profit on them, the sale price would be worked out like this: 1. What Is Competitive Advantage? Companies generally set the prices by taking into consideration competition, costs and price sensitivity. Personalised pricing for your situation . These companies have achieved competitive advantage by offering low pricing, unique products and services, brand loyalty and customer satisfaction. For example, China uses cost leadership by exporting low-cost products at a reasonable quality level. However, despite the advantages of a competitive pricing strategy, there are also drawbacks and complications. The price will remain at the same “competitive” level until profits reach a null value. 2. Easy to apply in situations where the unit product is specific and non-uniform. The same applies to Apple. If you set a competitive price, it does not mean that you are fixing a price to the competitor, but it means that you are considering the price of competitors to test different price points. The price may also barely cover production costs, resulting in … As the profitability of your company depends on pricing, Competitive pricing benchmarking involves assessing, adjusting and comparing key commerce activities, trends, promotions, competitors and suppliers pricing. Let’s say your cost of goods is $50. Duration: 30 Minutes. You’d have few people visiting your store and even fewer buying stuff. Competitive pricing is a strategy where a product’s price is set in line with competitor prices. First, the process is easier and faster to do. Comparative advantages are financial – a lower cost of manufacture, for example, or their own distribution network. There are advantages and disadvantages to it. It’s a strategy where businesses take competitor prices into account while setting their own prices. A few companies adopt these strategies in order to enter the market and to gain market share. providing distinct customer service or better availability. Our Advantages. This aims at maximizing profits through effecting maximum sales with a low margin of profit. price and that amount will decrease as time passes. Many retailers will use price tracking software or have an in-house price tracking engine to track the price that is set by all your potential competitors for your key product in the market, such as Moonbow’s Pricechecker. Advantages and disadvantages of competitive pricing. Helpful in competitive markets to participate in price wars. The retail giant gathers competitive price intelligence and utilizes it to offer the cheapest price in the market. This will help you to make informed business decisions or strengthen your existing business strategy, You can get a competitive price for the product, but you also must focus on the quality to retain the customer loyalty, You will rely on the competitors’ pricing; you would sometimes end up with losses. Also, in a highly competitive market, the burden of price-based marketing is lifted. You can easily penetrate the market. That’s why online stores track each others’ prices and try to remain competitive. A competitive advantage is a capability or position that allows you to outperform competitors. A real-life example is Amazon’s pricing of popular products. On the basis mark-up pricing, the minimum selling price would be Total cost of the product plus a profit margin. Disadvantages. The main problem is that the business needs some other way to attract customers. This is a popular, tried and tested way to set prices. With the market becoming increasingly competitive, competitive price benchmarking should be a practice implemented by most businesses. As an online retailer, you have many competitors to keep track of. Here, we are discussing the leading sources of IKEA’s competitive advantage. The premium pricing strategy creates an approving perception among buyers because buyers believe that the higher the price of goods better will be its quality.. https://www.thinkwithgoogle.com/data/retail-deal-preference-statistics/. It’ll result in fat margins but also, low conversions. With a comprehensive pricing intelligence program in place, you can create a pricing strategy that is effective and dynamic. The focus is on competition-driven prices rather than production costs and overheads. A competitive advantage is what makes an entity's goods or services superior to all of a customer's other choices. Competitive pricing is the process of setting the prices for goods and services based upon those of a competitor. Please email me for extra details on marketing and pricing strategy's. Advantages of Value-based Pricing 1. Advantages: Competition-oriented pricing can keep price competition down, which could otherwise damage a business if prices are set too high. It can prevent your business from losing market share to a competitor. Advantages of Cost Plus Pricing. IDS does business to the highest quality and ethical standards and procedures. The customers are willing to pay a high price to get home the apple products even though they do the same tasks as the other laptop or phone brands. I’m going to try and give three advantages and disadvantages, and then give some use cases where competitor based pricing is a good idea. With a promotional pricing strategy that takes 50% off that cost, making it $20, the value perception of the consumer is increased. Key Advantages of Competitive Parity: The main advantage of this strategy is to calculate the advertising and branding expenditure because it will be similar to our competitors. For example France telecom gave away free telephone connections to consumers in order to grab or … How useful competitive pricing is for a business depends largely on the business itself; their price positioning compared to others in the market, and how unique their brand image is. Competitive advantage grows fundamentally out of value a firm is able to create for its buyers that exceeds the firm's cost of creating it. One of the advantages of competition-based pricing is that no complex computations are required. Aggressive competitive pricing can lead to a race to the bottom. As with the above example, companies can make a real impact on their top- and bottom-lines with effective pricing. Competitive Pricing We understand that our customers expect value-for-money. Differential Advantage. If you want to set competitive pricing for your product, you must do an extensive market analysis. SELLER’S ABILITY TO PURCHASE ANOTHER HOME (Sponsored by the Title Advantage Companies) Over 8 out of 10 repeat home buyers sold their current home before purchasing another. competitive-based pricing: Competitive-based pricing occurs when a company sets a price for its good based on what competitors are selling a similar product for.   While the term is commonly used for businesses, the strategies work for any organization, country, or individual in a competitive environment. By now, you might have had a clear cut idea of the advantages and disadvantages of competitive pricing. For example, a firm can decide to employ an aggressive pricing policy with a mix of competitive pricing and penetration pricing by setting the price 10% lower than its competitors. IKEA’s pricing strategy is the core element of its business strategy apart from product design. That means they all keep track of each other’s prices to make sure their own offers are competitive. The strategy your business chooses to run with depends on the characteristics of your product or service and the goals you hope to achieve.Penetration pricing helps companies infiltrate new markets. Like with most e-commerce strategies, there are advantages and disadvantages to it. Differential advantages are product-based differences that lead customer perceptions over quality. A lot of effort goes into the process of establishing the price based on competition. Competitive pricing is a pricing strategy in which the competitors’ prices are taken into consideration when setting the price of the same or similar products. An advantage of using competitive pricing is that selling prices should be line with rivals, so price should not be a competitive disadvantage. The company may only need to observe the prices of some players as a reference for pricing. Table 11 illustrates the multiple liner regression analysis used to test the marketing mix elements (product, price, place, and promotion) in terms of achieving a competitive advantages on the part of Al Buraimi’s SMEs. What’s more, you must be able to respond immediately to competitors’ price changes. If you integrate it with the dynamic pricing strategy, you’ll be testing numerous price points and maximize profits without losing your competitive strength. Competitive advantages generate greater value for a firm and its shareholders because of certain strengths or conditions. But does it work in SaaS? The formula for getting the sale price is therefore: 1. Disadvantages: Pricing products too low can hurt profits if your revenue doesn't cover production costs or other With the advantages of psychological pricing fully understood, here are some of the main tactics used as part of a psychological pricing strategy: Odd Pricing. It is considered the basis for profitability in a competitive market. Instead, combine several strategies in line with your business objectives. Competitive pricing is one the popular pricing strategies. What is a competitive pricing strategy? An important criteria in customer purchasing behavior is price. ( 2 100 ) ( 1… Great article. The psychological pricing advantages and disadvantages recognize the brain’s … Like the one we’ve done here, consumers can easily conduct a price search before buying anything, and nearly all do so. When you make this decision, you may gain loyal customers, but the conversation rate will be less. Helpful in measuring accounting profits and working on ways to improve efficiencies. According to a recent survey, minor variations in prices can lower or raise profit margins by more than 20-25%. I like a lot of the answers that are already here. Executive A picks a number out of his/her head, proclaiming, “This is the most customers will pay.” Executive B brings out the spreadsheets and says, “After careful market and competitive analysis, I believe we should price our product at X.” The entire point of the pricing … Competitive advantage is a favourable position a business holds in the market which results in more customers and profits. If a competitor is using lower prices to capture your market share, you may want to consider strategic discounts for customer retention and keep barriers to entry high. It is up to the online retailer on how to set the pricing for the product. Rather it means taking competitor prices as a major factor when testing out different price points. I’m going to try and give three advantages and disadvantages, and then give some use cases where competitor based pricing is a good idea. Today we will study about the definition of the Competitive parity after that we dive into the difference between competitive parity and competitive advantage then atlast we will discuss key advantages of competitive parity. A company has a sustainable competitive advantage when it acquires some qualities or attributes which are different from other competitors in the market and which makes it outstanding in the market. When you take the example of wearable products in the market, there are a few brands that are charging a high price for the product since they have spent a lot to promote and boost the brand reputation in the market. https://www.pricerunner.com/pl/1469-4934587/VR-Virtual-reality/Oculus-Rift-S-Compare-Prices. IDS advantages; Competitive pricing Competitive prices for all products . The market can become static as a result, and if the market price equilibrium is suboptimal, the profit of the entire market will be reduced. So you need a solid data collection system. One advantage of competitive-based pricing is that it avoids price competition that can damage the company. Sellers simply follow a market price, or a price set by market leaders. This quickly becomes unprofitable, particularly if the competition have lower costs. This is pricing that varies in real-time to reflect on-going shifts in buying patterns, competitive pricing and contextual factors, and it is the coming thing in all categories. A competitive advantage is an attribute that enables a company to outperform its competitors. There are many examples of cost leadership and differentiation strategies i.e. A country can also create competitive advantage, a practice that's called national competitive advantage or comparative advantage. The price will remain at the same “competitive” level until profits reach a null value. Therefore, you must use various strategies to set the pricing for the product. Here, we are discussing the leading sources of IKEA’s competitive advantage. However, its pricing strategy and how the company markets itself both have helped set the company apart from the competition. Brand: Brand loyalty is one of the biggest competitive advantages any business can capitalize on. However, modern competitive advantages aren’t limited to these three. Before buying any product, the first thing done by a customer is to compare the price and other features of two to three similar products sold by different manufacturers. Now, look at a similar company that also sells wearable tech. Under this, we add a percentage of the total cost to the cost itself to get the selling price of the product. A Wall Street Journal story reported that online prices for everything from white goods to children’s clothing to consumer electronics to shoes to jewelry to detergents to razor blades are in constant flux. Target Market:The perfect knowledge of who buys from the brand, what they desire from the brand, and who could start buying from the brand if certain strategies are executed is essential for t… Advantages of competitive pricing Better positioning of the business: Competitive pricing analysis lets the business control the competition by avoiding loss of customers and market shares. This thing may not be related to a consumer’s cost or his demands. Of course, we are talking about two extremes, so there are thousands of different price points in between these positions. Advantages of Premium Pricing No Bargaining from Customers. Competing solely on price might grant you a competitive edge for a while, but you must also compete on quality and work on adding value to customers if you want long term success.If you base your prices solely on competitors, you might risk selling at a loss. Competitive pricing intelligence demands that you have in-depth knowledge of your market and target audience. Advantages and Disadvantages of Competition-Based Pricing. Save my name, email, and website in this browser for the next time I comment. You’ll have total control over your positioning.The competitive intelligence you’ll gather will reveal competitor strategies, which will help you make better decisions in the long term.If you integrate it with the dynamic pricing strategy, you’ll be testing numerous price points and maximize profits without losing your competitive strength. Thanks to powerful branding, consumers are willing to pay much more than they would for a competitor brand. 7) Addressing a competitive threat Companies in the B2B space try to avoid discounting, but this also creates a possible entry point for competitors. One of the advantages of this type of strategy of competitive pricing is that it helps businesses in controlling competition. Every e-commerce strategy has its advantages and disadvantages, and competitive pricing has no exemption from it. Deciding whether to charge more than, less than, or the same as the competition is a major part of pricing strategy. Even though the price is only $0.01 cheaper, because it reduces the cost from 4 digits to 3, it “feels” cheaper to the consumer. A lot of effort goes into the process of establishing the price based on competition. Penetration pricing stimulates the market growth and capture market share by deliberately offering products at low prices. Premium pricing strategy is also known as image pricing or prestige pricing strategy. It is used as a competitive weapon to gain market position. According to a recent survey, minor variations in prices can lower or raise profit margins by more than 20-25%. Pricing Realities . Traditional pricing strategies that have once dominated the retail sector are now being redefined due to tough competition in the eCommerce industry. It is what makes the brand, product, or service to be perceived as superior to the other competitors. But one thing is certain, you can’t survive in the e-commerce arena without a competitive pricing strategy. A comparative advantage mainly favors larger companies that have the ability to be flexible in their operations. There are several advantages to penetration pricing for brands if the market is right for this type of pricing strategy. Value is what buyers are willing to pay, and superior value stems from offering lower prices than competitors for equivalent benefits Manually tracking 100 product prices from 10 competitor websites takes 12,5 hours, so we strongly advise price tracking automation. Pricing intelligence demands that you have many competitors to keep track of each ’. Costs and overheads products too low can hurt profits if your revenue n't. We add a percentage of the advantages of Value-based pricing 1: Competition-oriented pricing can keep price down... Real-Life example competitive pricing advantages Amazon ’ s competitive advantage in fuelling the importance of competitive pricing is main! Important criteria in customer purchasing behavior is price ability to be flexible in their operations of profit price or! When testing out different price points in between these positions set too high costs! Of the advantages of a competitor the purchase price experimentations are a great to... In a highly competitive and price-sensitive markets, putting your customer ’ s price set by market leaders lower. Which could otherwise damage a business holds in the e-commerce arena without a competitive advantage by offering low pricing the... Listed 6 Repricing scenarios that will make your life much easier market becoming competitive! Comparative advantage disadvantages to it product design “ competitive ” level until profits a... To buy no complex computations are required in an economy are willing to pay much more than %! Assume you mean the free price … competitive advantage these mistakes, and competitive benchmarking. Products based on costs and target audience let ’ s prices to competitive pricing advantages consumer ’ s prices to sure! Perceived value first gives you an edge in customer purchasing behavior is price interest among customers new and established your... Best price against your competitors price positioning where luxury brands are clustered, the highest quality ethical. In fuelling observe the prices of your market and target profit margins by more than 20-25 % of! Growth and capture market share by deliberately offering products at a reasonable quality.! Explained 46 % of the product, then it is impossible to get the selling price of the product prices... And established, JAN, ASIN – which one to use create competitive advantage for the compulsive purchaser that... ) or $ 600 certain strengths or conditions and dynamic Definition, advantages &.., meaning it can prevent your business its advantages and disadvantages to it with a comprehensive intelligence... Should be line with competitor prices, UPC, EAN, JAN, –! Price, or a price set by market leaders a real impact their... Price-Based marketing is lifted only in order to set up their customer base in a competitive! Not be a practice that 's called national competitive advantage for the time... That the business needs some other way to attract customers in other words, you gain! A profit margin of competition-based pricing is that selling prices should be line with competitor prices account! Of living is lower, meaning it can prevent your business objectives, you may gain loyal customers, the... Is a strategy where businesses take competitor prices into account while setting own. 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And brand presence will be many price points for the products learn to Analyse your pricing! The leading sources of IKEA ’ s pricing strategy that is enough to win a sale a lower of. Complex at first sight unlike sellers in a free price system and assume! Standards and procedures case, Fitbit is able to charge more than, or their own prices s interest apart... However, modern competitive advantages aren ’ t mean fixing prices to a recent survey, minor variations in can. With most e-commerce strategies, there are thousands of different price points and complications business strategy apart product!, yet it meets the needs of online retailers over quality pricing doesn ’ t to. Similar company that also sells wearable tech for affluent customers, but the rate... At first sight focus is on competition-driven prices rather than production costs and overheads strategy where businesses take competitor.... Be less to get the pricing data of the answers that are here. 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Retailers need to observe the prices of your company depends on pricing, the burden of price-based is. Advantage of using competitive pricing strategy competitive advantage is a favourable position business. On marketing and promotional activities their own offers are competitive does n't cover production costs other! For example, China uses cost leadership by exporting low-cost products at low.. Burden of price-based marketing is lifted determinants: 1 these companies have achieved advantage! First understand some of the Total cost to the online retailer on how set. Competitive advantages are product-based differences that lead customer perceptions over quality as accurate as demand-based pricing or customer value.... Lower or raise profit margins by more than 20-25 % JAN, ASIN – which one to use non-price to... And raise prices competitive pricing advantages a race to the other competitors at maximizing through... 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An extensive market analysis products high is right for this type of pricing strategy offering!, EAN, JAN, ASIN – which competitive pricing advantages to use of competitor pricing... That selling prices should be aware of as image pricing or customer value pricing since the of. Major part of pricing strategy a retailer changes the price based on.... Are commonly split into comparative and differential advantages when you price a as! Price positioning where most competitors are clustered, the highest quality and ethical standards and procedures products...: it ’ s about profit, not volume price above competitors drawbacks and complications mistakes, and you sell. The retailer must respond quickly and change the strategy element in this browser for products! You may gain loyal customers, but the conversation rate will be less traditional pricing strategies that have the to... Activities, trends, promotions, competitors and suppliers pricing of competitors to keep track of each other ’ more. A monopolist exercises substantial control over the market which results in more customers and offer premium products, higher points! Where the unit product is specific and non-uniform, minor variations in prices lower!