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Competition in business

While some persons sees competition as threat, I see it as opportunity. If Mr A is selling yam and he is the only person doing such trade in that locality, there will be lots of holes to patch. Many people out there don't want anything like competitions at all, they just want to see things remain the way it is. If you are among those person that has such mentality, you better let it go.

When there is surge in business competition in a locality or economy, there is every tendency thyqt there is going to be positive impact in the country's economy. This is why competition is something we all should encourage and practiced. The known reason why some person hate competition is because it will render their business valueless. But if we are to consider this, every economy won't progress.

What is Competitions in business

Competition is the rivalry between companies selling similar products and services with the goal of achieving revenue, profit, and market share growth. Market competition motivates companies to increase sales volume by utilizing the four components of the marketing mix, also referred to as the four P's.

https://study.com/academy/lesson/what-is-competition-in-marketing-definition-types-quiz.html

From the above we can see that competition in business involves two parties or companies aiming to gain larger share of the market. This involves carrying out so many task like offering the market a better product than that of other customers. Sometimes it involves cutting cost on your product and making it affordable to all customers without running at lost. Just like as I said, while doing all this, you have to ensure that your company doesn't run at lost. If your company run at lost, it means you have lost out to your opponent in the competition market. This is why competition is not easy. You have to know why you are competing and also if it is a good deal to compete.

An encounter with Mr V Gold

He talked about his business and how competition drives him out of the market. He was competing with somebody selling same product with him. While the competition was on going to, he ends up reducing the price of his item more than the way he bought the item.

He keeps doing this over and over again not until he run a checked on his business and noticed that he has lost 90% of his business to competition. This sound funny right. Yeah, he said that is how he went out of business but later bounced back after four (4) years. He now has experienced and doing better. This is the more reason I hinted that if you are into competition, ensure to know what you are doing. Don't go into competition and ends up shutting yourself out of business.

The importance of competition in business

Quality: When there is competition in business, it will bring about quality of product to the market. For example, if I am producing Cement and Mr B is producing cement too. If we both are competing, it will help to see cement being produce in good quality. This is why competition is a good thing.

Control in value of product: It is been noticed that when there is competition between two brand, there is going to be control in price. This will shows the real value of price as none of the team members will want to inflate their goods more than initial price.

Innovation: Since there is competition between two company, you will see the both company trying to bring something innovative to the table. Creativity will increase 100%, so this is good for an economy as innovation will surge.

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