Most business are much concerned with competition in the market. They do indulge in active competition that makes the consumers pay much attention to the products in the market. The consumers expect much offerings in the market in terms of services and products.
The buying power of the consumers does matter and the mode of business much depends upon it. The businessman has to provide what the customers want. In other words the customer plays an important role indeed.
Advantages of market competition:
1) Upgradation
One tends to regularly upgrade one’s product as well as to innovate so that one can stay much ahead of competition. Competition needs to be there. It leads to more innovation and creative ideas. So up-gradation does happen to be a natural advantage of having market competition.
2) Adding more value
The advantage of market competition is that companies are indeed always adding value to their product. They can also either increase the quality of the product, or they can also decrease the prices. In either of the cases, the products do become very desirable to the customers who focus upon the value for money product.
3) More options provided for customers
Customers have more options to choose from when the competition is stiff in the market. For example, there are so many smartphone to choose from. Every company tries to offer more variety of products to enhance its image as well as sales. The customers have lot of brands to choose from and can meet his or her taste in the selection of the product or service.
4) Productivity
Businesses on the whole prefer to be very productive and efficient and try to deliver what the customer wants. The businessman tries to optimize his operations and manufacturing services for the best results in marketing and delivering of products and services. The focus is upon better customer services, optimized products and better management that do cater to customers.
5) Focus on sales and customers
Competition ensures that the business lays more emphasis on sales. He or she has to meet up to the demand expectations of the customers. More customers implies more market share and competition keeps the businessmen on their toes.
Conclusion
Business set-ups do compete hard with each other in order to promote their sales and try to provide what the customer wants. Efforts are made to improve upon the product and services as they have to prove one-up over their rival. There is no scope for any compromises in quality as the latter has to be of high order in order for product or service to stand out.
Business progress is based upon healthy competition and customers are the kings in the market and are given ample attention by businessmen.
Brands are many to choose from and new innovative ideas allow these brands to add new features to make them more viable in the market. Customers want new products and services and do value their money and expect the company to provide what they have in mind as a “good” product or service.