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What is Theoretical basis of competition?
The theoretical basis of competition explains how to analyze the data which affects a business and how changes in strategy create a good market. On a theoretical basis the corresponding changes in strategy are meant to achieve a perfect stability in the market to perform better than the competitors. It means that if a business is facing losses, then improvement are made to make it perfect so as to generate more profits than a competitor. The feature for which a customer selects a competitor rather than a perfect product can be anything. In order to improve the features of the product by adopting a theory and applying it to a business is known as Theoretical basis of competition.

The corresponding changes may be anything like look of the product or about its color, quality, availability or something else. It means what theory should be taken into consideration to make the perfect stability in the market.

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