How firms compete

Competition is life and everyone in this world tends to do things differently with a hope of achieving desired results. Likewise, companies have similar motives. Due to external forces and firms' capability, firms look for ways of operating their businesses differently in order to out-pace their rivals. Some of the ways firms apply include in-house-make and outsourcing of non-core activities in order to reduce production costs and produce products in large scale which are offered at a reduced rate or at a market rate in the identified markets. Alternatively, the firms may produce products with unique features and offer them at a premium price in the selected markets. The end result can be increased market share, superior profits and customer satisfaction.