Why Competition is Good in Business Essay Example | Topics and Well Written Essays - 750 words

Why Competition is Good in Business - Essay ExampleThis paper illustrates that the goal to compete with rivals to become superior can be identified in human beings right from their childhood. They try to take several approaches in order to look the competition from the real world. Sibling rivalry, reward from little things and development of new skills from competition help the children to sense the urge of competition right from childhood. An organization ineluctably to distinguish itself from the competition through industry analysis, outshining competition, focus on effective customer service, and development of business operation opportunities. It is true that feelings of competitors can change the look and thought process of individuals. According to the social psychology competition helps to improve overall individual performance. Sometimes it can hamper performances. The role of technological variation is pivotal to foster the overall business growth. The key driver for i nnovation is competition between the companies. Companies need to develop new ideas to maintain its competitive proceeds over other rivals. Business organization is pushed by competition to innovate and gain profits from their innovation. The drive of competition is to develop new product and sum up market share of a company. Innovation can lead to product diversification, increase of competitive advantage, upsurge of profit margin and fulfillment customer needs. If a company is only a single player in the field, it becomes quite difficult to innovate. Company working in a crowded market essential be forced to innovate to be distinguished from other businesses. Company can be over-reliant on new products which can eventually lead profligate expense of marketing. During the product lifecycle, innovation can imply huge investments and it cannot be paid back. New technology can often lead to significant upfront in expenditure. Small organization may not have the resources to innova te new products. Over dependent on innovation can sometimes be a downside which is hard to overcome.