wazbee there is a "C:" option that a smart business person would do before taking any of the other options.
Reassess your business attitude, look for other ways to operate your business and how to make your products, reassess your market and product match with your market, compete with your competitors on what they don't offer, never try to compete with your competitors on something you cannot compete with, use your strengths to differentiate your products from others, always be better than your competitors at what you do, etc.
It is not always about being the cheapest, if that was the case we would not have a choice of owning a KIA, Holden, BMW etc.
Your A option is silly.
The B option is for the business owner that is a lazy thinker and has no imagination or drive to get the best out of their business.
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