you can reduce the destructive forces of competition.
The two coffee shops could avoid competition by targeting different kinds of customers rather than fighting over the same ones. One could choose to supply lower-quality take-out coffee that would appeal to those on a budget, while the other could provide more up market coffees and pastries in a stylish cafe to appeal to those with more income.
In this way, by actively targeting different customers to your competitors and choosing to serve only one market segment, you can reduce the destructive forces of competition. If you are successful and develop a dominant position in your chosen market segment, competitors may be intimidated and look for their own segment to move into.
ACTION POINT: Position your self to develop dominance in your market.
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