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?