Essay On Benefits Of Competition

Competition, what exactly are the benefits of a competing business? Why do companies engage in brutal advertising to gain a customer? Companies must become proactive in sales in order to establish a strong customer base. Business must compete for the consumer’s dollar in order to ensure their survival as an establishment. However, this competition is beneficial to America’s economy and the world market. In addition, competition can be very attractive news because it can unwrap huge savings and discounts to the consumer. Competition is beneficial to the consumer, the economy and the businesses.

The first and foremost benefit is the great deals consumers can receive through a competing company. Companies will do anything to drum up

In addition, competition also provides job opportunities in all career fields. As the demand for an increase in product is placed on a company from all over the globe, so is the demand for highly skilled workers. M.J. Slaughter from The Wall Street Journal Asia explains this concept. “More hiring abroad stimulates more U.S. hiring. For example, as Wal-Mart has opened stores abroad, it has created hundreds of U.S. jobs for workers to coordinate the distribution of goods world-wide. The expansion of these foreign affiliates -- whether to serve foreign customers, or to save costs -- also expands the overall scale of multinationals.” Therefore as a competing company grows on a national or global scale, the need for employee’s increases. In addition to job market growth, product development is another benefit of competition.

Greater product innovation arises from a competing company. For this very reason there are multiple versions of products to choose from on store shelves. From weed eaters to floor mats, cereals to lunch meat, there is no shortage of options for the consumer. Greater innovation for less costly products, stretches the good ole American dollar. An innovating company can produce and sell more products at a lower cost. Thus stretching the American dollar and decreasing

There is the famous internet store and the old fashion brick and mortar store. However, all types of companies will eventually open a brick and mortar store or an internet store. For example, Wal-Mart and Amazon, one is a brick store and on is an internet store. Amazon is an internet store that has recently announced the grand opening of their first brick and mortar store. Whereas, Wal-Mart is actively pursuing internet sales and home deliveries. Without competing business, Amazon and Wal-Mart would have no need to expand into these areas. An ever expanding company is great however, a company must try to become a distinguish company.

A distinguished company such as Macy’s attracts both customers and vendors. H. Yu-Jia an editor at the International Journal of Organizational Innovation explains this effect. “The results indicated brand quality has significant and positive relationship with service quality and customer loyalty. Brand equity also moderated the relationship between service quality and customer loyalty.” So in a nutshell, if a competing company has a great brand it will attract quality products and loyal customers to its