Competition
After seeing growth and the success in Mehta’s business Mr. Gupta also gets tempted to start his own business of cooking and selling homemade snacks and so even he takes off by offering retailers and vendors his cooked snacks. He sells his snacks by the name of ‘Gupta Snacks’.
Competing Tactic
But, he keeps a profit margin of only 5% by offering the retailers and vendors more profit margin so as to better compete with Mr. Mehta and be able to penetrate the snacks market with a better chance of success. If he keeps a higher profit margin then people won’t be interested in buying his snacks as nobody knows his brand name as people now know of ‘Craker snacks’.
Patrick Abboud
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