Competitive pricing refers to the strategic approach of setting product or service prices based on the rates offered by competitors within the same market. It is a vital tool for businesses aiming to attract customers while maintaining profitability. By analyzing competitors' pricing structures, companies can position their offerings to provide greater value, differentiate themselves, and stay relevant in a dynamic market. Competitive pricing allows businesses to remain competitive by appealing to price-sensitive consumers without compromising quality or service. However, it requires a delicate balance: while pricing too high may drive customers to cheaper alternatives, pricing too low can erode profit margins. Ultimately, businesses that master competitive pricing strategies can improve their market share, build customer loyalty, and drive sustained growth.