Why do we need competition in the market?

Competition is an inevitable part of the business world for businesses of any size. It is not a necessary evil, but rather an important part of the business ecosystem. In fact, competition can be an effective tool for growing and improving your business. Competition policy is about applying rules to make sure businesses and companies compete fairly with each other. This encourages enterprise and efficiency, creates a wider choice for consumers and helps reduce prices and improve quality.

The presence of competition in the market will ensure that there is efficiency as competitive markets equate the marginal cost to the average cost of goods that are brought to the market. Competitive firms usually offer consumers with the quantity of goods that are equitable to the price they are willing to spend for the products or services. Competitive markets are usually better for consumers when compared to monopoly markets because the decision making process that exists in competitive markets is conducive since it allows producers and consumers to be able to adapt swiftly to any changes that might occur in the market.

This allows the various competitors in the market to create products and services that will guarantee their survival in the market place. The level of competition that exists in competitive markets ensures that firms operating within these markets are able to adapt to the changing demands of the consumer market. Companies in these markets therefore engage in decision making processes that are meant to meet the needs and expectations of consumers by constantly engaging in product innovation activities. Monopolistic markets on the other hand fail to take into consideration the needs of customers because the decision making process is mostly limited to the firms operating within this industry.

This means that any changes to price or the quality of goods and services offered by these companies will be limited to the decisions made by the monopoly. Competition from many different companies and individuals through free enterprise and open markets is the basis of the U.S. economy. When firms compete with each other, consumers get the best possible prices, quantity, and quality of goods and services. One important benefit of competition is a boost to innovation. Most businesses are out there every day worrying if they can survive another year, if they can turn losses into profits. Competition for these businesses, particularly small businesses is one if not the most damaging hits to profits. There are so many aspects of competition that can negatively affect any business and their goals. Companies continually worry about how they manage their employees and deciding whom to hire, fire, layoff, give pay raises to, etc. They have to fight against all other competitors to prove why their small business should be chosen over other businesses on a global scale. Business have to fight for every dollar when times get tight and the economy slows to a halt. Small businesses have many barriers but with many hurdles overcome these business can succeed. Although business competition is exceedingly harmful to businesses themselves, we should all be glad that we as consumers can reap the benefits.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

Do follow me on FacebookTwitter  Youtube and Instagram.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at adv.aishwaryasandeep@gmail.com

We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge

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