Which statement about price competition in the performance-based yoga and fitness apparel industry is accurate?

In the performance-based yoga and fitness apparel industry, price competition intensifies competitive pressures. This is because companies within this sector often compete not only on the quality and innovation of their products but also on pricing strategies. When one brand lowers its prices to attract customers or to gain market share, it prompts competitors to respond, leading to a situation where companies continuously adjust their pricing to remain competitive.

This competitive dynamic can lead to a challenging business environment, as firms must find a delicate balance between maintaining profitability and offering attractive prices to consumers. Additionally, the presence of numerous brands in this industry, all vying for the same customer base, creates an ongoing cycle of competition that can further amplify price-based rivalry. Thus, recognizing the role of price competition is crucial for understanding the strategic landscape of the performance-based yoga and fitness apparel market.