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What is the correct purpose of competitor analysis?

Answer and explanation

Correct answer: To understand others' strengths, weaknesses, pricing, and service to improve strategy

Competitor analysis is a structured study of rival offerings, prices, strengths, weaknesses, service, and market position. The information helps an entrepreneur identify gaps, differentiate the product, improve service, and choose a better strategy. It is not intended to harm competitors or replace customer research. Closing one’s product or avoiding customers would defeat its business purpose.

Related tags

Competitor-AnalysisMarket-StrategyEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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