Question

the elasticity of demand concept, and that is definitely a factor companies have to take into account when setting their prices.

If their product is identical to another company's product, they can't charge any more, as they will not sell anything.

However, if their product is unique and people want it badly enough to be willing to pay extra for it, they can get away with increasing their prices.

What do companies do to try to make their product unique?

Answer 1

Companies can make their product unique
1. They follow the path of disruptive innovation where a completely new product is created which satisfies certain basic need and such a product is not supplied by any competitor.
2.They also keep on doing incremental innovation to provide a far superior product to its competitors.
3. Extraordinary service for its product which beats all its competitors.
4. The unique selling point of the product is well marketed or promoted to customers too.

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