Competitive Product - Definition & Meaning
What is Competitive Product?
Goods or service that can be sold in higher profitable quantities because customers prefer the competitive product compared to other products of competitors that satisfy a similar need in the market.
The differentiation may be because of price, quality, convenience, performance or service combination. Especially when a company enters a new market it should have a competitive product which will make the company stand out. The core product may be same as others but the augmented product should be competitive.
Making a competitive product needs a lot of exercise. One has to do consumer research to understand the customer needs and form consumer insights. The company has to understand the market and do a complete research on it.
Companies use a number of tools to check the competitiveness of the products to gain market share. When there are many competitors with a lot of new entrants, many of the offerings will look similar.
Competitive products are manufactured to sell for profit in specific markets. They are priced high so that they generate high profit for the innovation made and also it competes with other similar products in other related industries. Therefore competitive products ought to bring profits for the company with high margins.
Many times the competitive products are there in the introduction stage of product life cycle. Copanies invest a lot to come up with that product through their consumer insights. But competitors soon copy the product. Therefore the product loses its competitiveness. Hence, companies need to keep innovating to sustain the competitiveness.
Hence, this concludes the definition of Competitive Product along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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