Competitive pricing is a strategy where a business sets the price of its products or services based on the prices of similar offerings from its competitors. This approach helps companies attract customers by ensuring their prices are appealing compared to others in the market. Businesses often analyze their competitors' pricing to determine the best price point that balances profitability and customer interest. By using competitive pricing, companies can respond quickly to market changes and consumer demand. This strategy is common in industries like retail and technology, where companies frequently adjust prices to maintain an edge over rivals. Ultimately, competitive pricing aims to maximize sales while remaining profitable.