what are the suitable business strategies to maximize the profit in monopolistic competition?

Monopolistic competition is a type of competition where there are a huge number of buyers selling differentiated products. The number of sellers in this competition is also huge.

There are certain strategies with which monopolistic competition can increase its sale and profits. Like:

• Firms in Monopolistic competition should remove those products which are not profitable and rather increase costs.
• Firms should not increase too much inventory. Reducing inventory will help to reduce cost and also losses due to expired products and thus increase profits.
• Firm in monopolistic competition should focus on advertising its product and reaching as many people as possible. It should try to reach new customers. So that it can maximise its sales and earn high profit. But only those ways of advertising should be chosen which are not very costly. Like have word of mouth.
• Monopolistic competition firm should provide after sale services to its customers to stand out from the competition. Like free repair should be offered if product doesn't function properly. This will help existing customers to come back to that particular firm and increase its sales and profit. Even though cost might increase a little but this will help to increase sales a lot, thus leading to profits.
• Firms in monopolistic competition should review the way of manufacturing of its products. It should be in such a way that wastage is reduced. This will reduce cost and increase profits.
• Firms in monopolistic competition should try to focus on reducing their direct and overhead costs like trying to purchase raw materials at a discounted price will help to increase profits.