How do you compete with new businesses who are bringing down prices in your industry?

Analyze the cost side of the ledger which are composed of materials cost, labor costs, transportation costs, distribution costs and capital costs. These components are on the manufacturing side but there are also commerce and trade components costs that one needs to explore such as tariffs, duties, taxes and regulations. Any company lowering sale prices must have has found a way to counter costs or found a way to introduce innovation on either marketing, advertising and technology