Basically there are three main ways in which you can compete in the marketplace:

On Price

By serving a niche market better than anybody else

On the individuality of your product or service

Which of these is the better long-term strategy? Undoubtedly a lower price than the competitor is an immediate advantage – but will it deliver a continuing competitive edge? Differentiating your products from your competitors will provide a much harder to match advantage for your business.

No because your competition will not roll over and die. They will lower their price. So you are both making less.

Differentiating your products from your competitors will provide a much harder to match advantage for your business.

Differentiating your offerings provides the business with a focus on who it wants to serve and it provides you as the address that your market will turn to.