Final answer:
To solve the problem of increased competition due to e-commerce, companies typically embrace digital marketing and online presence. They use various digital strategies like SEO, content marketing, and social media to market their products globally and maintain competitiveness.
Step-by-step explanation:
E-commerce increases competition by erasing geographical boundaries, empowering customers and suppliers, and commoditizing new products. To address these challenges, companies usually embrace digital marketing and online presence. This involves using the power of the internet to market to a broader audience and to ensure visibility in a global marketplace. Techniques such as SEO (search engine optimization), content marketing, social media engagement, and online advertising are commonly employed by businesses seeking to compete in this expanded marketplace.
In recent decades, globalization and improvements in communications technologies have significantly increased competition for local businesses. Local retailers, in particular, face more competition as consumers have the option to order products from across the globe. Similarly, business-to-business markets have expanded due to online platforms allowing global interactions between buyers and suppliers. Adopting an effective digital strategy helps companies remain competitive in this dynamic environment.