the competitors. The value equation is determined by perceived benefits divides price.
Value for the customer can be increased by expanding or improving product and or service benefits, by reducing the price, or by a combination of these elements. Companies/ institutions those use price as a competitive weapon must have a strategic cost advantage in order to create a sustainable competitive advantage. This might come from heap labor, or access to cheap raw materials, or it might come from manufacturing scale or efficiency or more efficient management. Knowledge of the customer combined with innovation and creativity can lead to product improvements and service that matters to customers. If the benefits are strong enough and valued enough by customers, a company does not need to be the low-price competitor in order to win customers. The competitive advantages must exist relative to relevant competitors. If the company is in local industry then these competitors will be local, In order to national company or global company then their competitors will be national or global.