Final answer:
High-profit performing retailers use store positioning to create a protected niche in the marketplace, making them less susceptible to being copied by the competition. They may utilize strategies like predatory pricing, trade secrets, and trademarks to maintain their market share.
Step-by-step explanation:
High-profit performing retailers use store positioning in order to develop a protected niche in the marketplace, making it difficult for competitors to copy them. In a marketplace where firms have access to the same merchandise, it's crucial to create a unique aspect that differentiates them from the competition. This can include various strategies such as offering exclusive products, providing exceptional service, implementing innovative marketing strategies, or even creating a unique shopping experience. These differentiators act as competitive advantages that set a retailer apart from others and help in attracting and retaining customers.
When monopolistic competitors earn positive economic profits, other firms are encouraged to enter the market. A successful retailer might face competition from new entrants offering similar merchandise or unique attributes like a special barbecue sauce or a trademarked coffee blend. To protect their market share and maintain profitability, established firms might engage in predatory pricing, keep trade secrets, or use trademarks to preserve their unique offerings and strengthen their brand identity.