- Incentive drives competition. Incentive is the hope of reward or fear of penalty that encourages a person to behave a certain way.
- Incentives can be monetary (based on money) or non-monetary.
- Desire of customers also drives competition.
McDonalds vs Burger King
- Big Mac
- BK Big King
- Introduced to try to keep up with McDonelds
Martin vs Fenders
- Fender originally only made amps
- Martin made amps and guitars
- Fender began building similar guitars to keep up with martin
Apple vs Samsung
- Newer apple smart phones began to have "apple pay" and fingerprint sensor feature
- Samsung began to make improvements to keep up with apple such as offering there latest smartphone in four colors, increasing display size, offering fingerprint sensor swipe (to avoid copying apple), a stylus, and their own version of apple pay.