According to game theory, you should do business deals with your competitors to target different markets.
Game theory is relatively simple.
Each customer has different capabilities therefore forming a virtual company union each member of the union focuses on different customer capabilities.
You are the most experienced? You cost more targeting the rich market layer.
The union naturally controls the entire market so when a new competition tries to enter the union naturally blocks him.
As members grow, the product cost increases opening a new low income layer and allowing new competitors.
A union has to come to an agreement how market profit is split between the members.
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