How Competition Benefits Your Company

At times, we may wish that competition didn’t exist so we could have total control of the market, but we should see competition as a good thing and more importantly, as a vital aspect to economic growth. Competition is necessary and it benefits both the business and the consumer in a variety of ways. Here are a few reasons why a little bit of competition is a positive thing in the business world.


  • Drives innovation and the evolution of products and services
  • Motivates us to distinguish our organization from other organizations in our market and become recognized either through setting higher standards or creating a new and better product
  • Saves companies time, energy, and money
    • Serves as the best advertising market research a company can have. Without competitors, companies would have to spend drastically more on advertising
    • Shows us where to advertise, what demographics work best for our products, and the price ranges prospects prefer to buy in
  • Benefits consumers
    • Causes product differentiation, which allows consumers to choose a product or business that specifically fits their needs
    • Causes companies to appeal to a target audience either by offering better customer service or cheaper prices

What are your thoughts on competition? Has it benefited you in the past?

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