Topic: Competition in business - page 6. (Read 989 times)

and if i may add, competition is favourable to consumers. because in this manner, they can avail services at a better rate if there are more than one offering the same service. also, the business owners will have the challenge to make their services topnotch as they have competitors to deal with. it means, consumers are getting better services if there is competition involved. if a certain service is being controlled by one only, they can easily dictate their price and they may not even offer great service as the consumer has no choice but to get their service.

Competition is needed in every business and company so as to avoid monopoly. In the labour market were every trader wants to make good sales, they must device their competitive measures to make a great sale. So competition is a very useful tool for every business.

Most free market laws and regulations also make attempts to block monopolies from succeeding in a lot of countries too (I think some manage to stunt their own growth as well though - there are many companies with monopolistic intentions that don't work out how to export themselves well or don't look at how diverse the market they're trying to monopolise over elsewhere is).

There are companies too thst have learnt franchise approaches with entrepreneurs are a much better way to go than obtaining a complete monopoly over an industry (but that can also birth competition too if some of those entrepreneurs band together and make their own version).

Competition can be said to be a sequence of events in which companies, organizations or firms(small and big alike) that produce similar goods and or services try to outsmart, outwit each other to ultimately come out on top of the bunch.
A healthy competition in a free market is essential to a growing functioning economy and without a healthy competition, there is bound to be a monopoly in the production of goods and rendering of services.

These are some characteristics of competition;
1. A healthy competition should always be neutral and un-biased.
2. Competition is constant and ceaseless as it goes on all the time. We all indulge in competition whether knowingly or unknowingly
3. Competition is universal, common and all embracing as it goes on all over the world.

In my view, there are more advantages than disadvantages with competition in a free market.
Here are some pros;
1. It definitely fuels innovation, growth and progress
2. It brings about creativity and also increases productivity
3. A healthy competition definitely favors the consumers as it helps lower prices and increases the quality of goods
4. It fuels innovation which in turns brings about varieties and new ideas
5. It brings about decent pricing in the production of goods

As with pros, there are also cons.
1. As a small and growing business, you’re bound to lose business to bigger and stronger firms when there’s a strong competition
2. Competition pose a threat to a small business as they could pack up and close up shop
3. A competition could very well turn into a conflict especially if it’s an unfair competition with undue advantage to one side.

Generally, competition is very essential in a free market and without competition, there would be monopoly in the production of goods and rendering of services. And when there’s a monopoly, small business and start ups are destined to fail.