Question: How do businesses handle competition?

Sample Answer (The AREA technique):

Answer: Businesses may handle competition in various ways, such as by differentiating themselves from competitors through unique products or services, or by lowering prices to remain competitive.

Reason: Competition is a natural aspect of the business world, and businesses need to adapt and innovate in order to remain competitive and succeed.

Example: For example, a restaurant may differentiate itself from competitors by offering unique menu items or by providing exceptional customer service. Similarly, a tech company may lower prices or offer new features to remain competitive in the market.

Alternative: However, some businesses may resort to unethical practices such as price-fixing or unfair competition, which can harm both competitors and consumers.