Final answer:
Retail stores can compete with online retailers by providing a unique and personalized shopping experience, immediate gratification, and the option to try products before purchasing.
Step-by-step explanation:
In order to compete with online retailers, retail stores can focus on providing a unique and personalized shopping experience for their customers. They can create an inviting atmosphere with knowledgeable staff who can offer personalized recommendations and assistance. Retail stores can also offer in-store activities and events to engage customers and make the shopping experience more enjoyable.
Additionally, retail stores can leverage their physical presence to provide immediate gratification through same-day pickup or instant availability of products. They can also offer the option for customers to try products before making a purchase, which is a value that online retailers can't provide.
Competitive advantage is derived from superior performance as a result of relative superiority in the skills and resources a business deploys. These skills and resources make up positional advantages based on cost and differentiation.