Benefits of Competition in Business
Some people believed that competition seems like betrayal. On the other hand, in one way or another competition is a challenging activity.
In fact, business owners as well as customers can take advantage with the benefits of competition in business.
Capitalism is the existing economic system used in the United States. This economic system is less competitive in terms of the exchange of services and goods because of the minimum regulation set by the government. That is both business owners and consumers can enjoy the array of benefits in this economic system.
One of the benefits of competition in the business as well as in the economic environment is the lower consumer prices. This way, companies are battling with each other just to win over the consumer’s business. Offering lower prices is one of the most common strategies that most companies are doing in order to cope up with the competition. This is highly beneficial for consumers in such a way that they can take advantage with coupons or discounts, special sales promotions as well as implementation of other pricing strategy. Another benefit of competition in the business is that it encourages innovation. Obviously, many companies are focusing on innovation so that they can overtake the competition. Producing unique product to consumers can help gain competitive edge. This is not only beneficial to consumers but also to business owners through the increase in revenue.
In like manner, in order to stay in the competition, companies are doing their best to provide the best quality service to their consumers. This is the alternative in case companies are not able to win over other competitors on price. Definitely, they can attract and retain consumers by providing excellent customer service. In this way, companies would not only attract more customers but also build customer loyalty. Moreover, the competition in business also offers benefit to suppliers as they also battle to secure their businesses. This is true when business owners ask for lower prices from their suppliers in exchange for the business. In this way, the consumer is also beneficial as the company pass the saving onto them.
Likewise, the consumer can enjoy the benefit of competition by acquiring information. In case that the competition is at its maximum, companies are forced to provide information about their product and services. In this sense, it will make consumers to be well informed and eventually make a smart decision. This is made easier through the help of the internet in which consumers will just log on to the different company’s website in order to gather information. Likewise, even short span television commercial can provide information to consumers. In this way, consumers can make comparison that enables to be more confident in buying decision. Indeed, the competition in business is beneficial to all people involve in the economy.
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