Featureless phone is Tesco bestseller – How firms compete

I was surprised to see that Tesco’s best selling phone over Christmas was not a Smart phone with features like, GPS, internet and a touch screen but a £19 phone which can only really be used to make calls. In a market where firms traditionally compete through innovation, the VX1i Party Phone has found a niche by competing almost purely through price. This is a great example of how firms can be successful by finding different ways to beat the competition.