Quote:
Originally Posted by obvious Child  No it's not. Costco doesn't make as much as Walmart does. Yet it is a serious competitor to Walmart. Walmart has a higher profit margin then Tesco yet they are both highly competitive. You can actually make little profits and be very competitive. What competitiveness is about is cost. |
Right. Cost.
More specifically...
Lower cost.
Lower cost equates into more customers.
More customers equates into higher sales.
Higher sales equates into profits.
Merriam-Webster defines competition in business as "
the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms."
Competition drives down cost, increases technology and service in the effort to gain consumers that will buy your product over the competitor and this directly results in higher profits for the winning business.
So you have the first step... cost, but you are not integrating it into the bigger picture.