Write paragraph about competition between companies
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Marketplace is a highly dynamic and competitive place. Businesses have to face tough competition from other independent entities that offer similar services or goods in the marketplace. Such rivals are termed as ‘Business Competitors’. This competition exists between businesses in a number of ways. To ultimate aim of every business is to attract more and more customers. Competition exists in the market in terms of price, quality, features and offerings etc. It is due to the presence of rivals, that the price of products in a particular industry fluctuates. This is because the customers have a number of options to select the product which offers the best possible value for money. Thus, Business competitors are entities that have the capability to attract a business’ customers and offer them greater value for money. For example: Competition exists between Budget Airlines on the basis of price. These airlines are in tough competition with each other to offer value for money to attract the maximum number of customers. Customers looking for a budget airline deal, with no frills attached will select the deal which offers them good value for money. Price war is the most noted kind of competition among businesses. However, there are other forms of competition as well. For example:
Product innovation - to offer unique products as per the needs of the customers.
Personalisation of products - providing extra benefits to products to cater for particular customer groups. For example: financial service products specially enhanced to suit an individual’s needs
Location - being at the most convenient location for customers.
Customer service - giving the best personal attention to the needs of customers.
Competition should be taken as a means of improving a firm’s business and firm should not lose focus of its objectives of improvement while concentrating on finding tactics to beat the competitors. Business competitors can be termed into two categories:
a. Direct competitors: A business that manufactures or offers a good or a service that is extremely similar to the other business in the same marketplace is called a direct competitor. These two similar businesses operate in the same geographic region as each other and have the capability to reach the same potential customers. The target audience for both the business is same to a great extent. For example: Supermarkets competiting in a particular region. Direct competitors offer almost similar type of products in the market with little difference in terms of product quality, features or price.
b. Indirect Competitors: Other form of competition that business faces is called In Direct competition. These competitors may not offer similar product but operate in the same market and have the capability to attract a business’ customer base by providing them with an alternative. Indirect competitors sell products that are satisfy the same need of the consumers but by a different product offering altogether. These competitors although operate in a different sector, compete for the same customer base
For example, taking the case of entertainment industry, theatres face stiff competition from other providers of entertainment activities such as theme parks, bowling alleys etc. These other providers are the indirect competitors to the business of theatre owners.
Product innovation - to offer unique products as per the needs of the customers.
Personalisation of products - providing extra benefits to products to cater for particular customer groups. For example: financial service products specially enhanced to suit an individual’s needs
Location - being at the most convenient location for customers.
Customer service - giving the best personal attention to the needs of customers.
Competition should be taken as a means of improving a firm’s business and firm should not lose focus of its objectives of improvement while concentrating on finding tactics to beat the competitors. Business competitors can be termed into two categories:
a. Direct competitors: A business that manufactures or offers a good or a service that is extremely similar to the other business in the same marketplace is called a direct competitor. These two similar businesses operate in the same geographic region as each other and have the capability to reach the same potential customers. The target audience for both the business is same to a great extent. For example: Supermarkets competiting in a particular region. Direct competitors offer almost similar type of products in the market with little difference in terms of product quality, features or price.
b. Indirect Competitors: Other form of competition that business faces is called In Direct competition. These competitors may not offer similar product but operate in the same market and have the capability to attract a business’ customer base by providing them with an alternative. Indirect competitors sell products that are satisfy the same need of the consumers but by a different product offering altogether. These competitors although operate in a different sector, compete for the same customer base
For example, taking the case of entertainment industry, theatres face stiff competition from other providers of entertainment activities such as theme parks, bowling alleys etc. These other providers are the indirect competitors to the business of theatre owners.
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