In a competitive market, in order to gain market share, the firm must differentiate itself from which of the following?

• A. Government regulators
• B. Its own previous products
• C. Suppliers of raw materials
• D. Other firms offering similar products

Answer: (D)

Verified step by step guidance

1. Understand the concept of market share: Market share refers to the portion of total sales in the market that a firm captures compared to its competitors.
2. Recognize that in a competitive market, firms compete primarily with other firms offering similar products, as they vie for the same customers.
3. Identify that differentiating from government regulators, suppliers, or a firm's own previous products does not directly increase market share because these entities do not compete for customers in the same way.
4. Focus on how product differentiation—making a product distinct in quality, features, or branding—helps a firm stand out from other firms offering similar products.
5. Conclude that to gain market share, a firm must differentiate itself from other firms offering similar products, as these are the direct competitors in the market.