There is a near limitless supply of snack food available at any gas station, grocery store and convenience store in America, including packages pretzel products. With this many potential competitors, Auntie Anne's Hand Rolled Soft Pretzels must compete vigorously. The competitors range from very large, well-financed competitors with rock-solid brands to mom-and-pop operators and small businesses. Some sell products at a premium, while others are cost leaders. This is one of the most competitive spaces in U.S. retail, and as such it is almost impossible to find a niche in the market that is unfilled.

3. In order to compete better in an industry characterized by a state of monopolistic competition, Auntie Anne's Hand Rolled Soft Pretzels must differentiate itself from competitors. Doing this takes advantage of the imperfect information on the part of customers that allows Auntie Anne's to be a price maker. The degree to which the company...
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