Yes, the grammar is natural and the definition reads naturally. Your use of the word "too" is correct. Your use of the word "the" is correct. Your alternatives are also correct. For some reason, I find the word "rendering" awkward here, even though logically and grammatically it seems fine. I might keep the "too" but sidestep the problem by writing: "Predatory pricing: setting the price of goods and services too low for the competition to afford to compete." I will just point out that, like most definitions, what you have written is not a complete sentence. In the context of a glossary or a list of definitions, you would use the form. If it was in the middle of a paragraph of writing, you would write a complete sentence like "The term 'predatory pricing' means setting the prices and services too low..."

You coud say: the practice of setting prices so low as to crowd out the competition. Or: setting prices so low that the competition is (or will be) (easily) crowd out. Or: setting the price of goods and services too low for the competition to be able to rival. I'm using alternative verbs to "compete" (rival, crowd out) in order to avoid the "repetition" (competition - compete). As to the structure for + object + infinitive, it's used especially after certain adjectives (essential, important, pointless, etc), with "too" and enough" with any adjective (too beautiful for..., big enough for...) and after a few verbs (as far as I know, the verbs arrange, suit, wait and take, but maybe others too). "To take" in the meaning of "the time it takes: "it takes forty minutes for the cake to cook (or to bake)".