“The presence of a competitor is always beneficial to a company. Competition forces a company to change itself in ways that improve its practices.”

 

In my opinion, competition improves the performance of a company a lot. A healthy criticism develops one’s performance to a great extent. And I think that the criticism must always be taken positively, as it forms the basis of improvement. Any organization does well, if there exists the competition for either its products or for its services. It must be seen as, the zeal to perform “better” than others.

There are many reasons that competition is not at all beneficial for a particular firm as it may create the market situation more complex by introducing the same thing which either exists in some other or in the same form. It also declines the sales as well as it may also deteriorate the quality of the products which were being sold previously. A classic example of this can be China’s interference in electronics market. Though not all, many of the products not only lack in quality but they can also cause negative impact on one’s health. The batteries which were produced in China for Nokia phones were proved to be hazardous and some of them also exploded on people’s ears. As, stated in the beginning, healthy criticism helps to excel. It can be seen from the way, the opposition party which stands against the ruling party in the government assembly, not only helps the current ruling party to do well, but also it may be seen as the efficient way to keep a watch on the policies which are about to introduced in the system.

Competition forms the basis for development; it may be seen from the example of the ERP-software companies. There exits three big vendors- SAP-AG, Oracle and J.D.Edwards, they not only provide robust and intact software for any enterprise, but also are in continuous process of development for their products according to the customer needs and also according to the others ( their competitors). When there’s a competitor, then you are naturally more inclined towards self improvement and also imbibe good things from your competitors. It is not only necessary for the improvement of quality, but it also creates a healthy competition as well. When Google Inc introduced RC4-128 bit encryption based web mail services, many joined the league in order to provide better services to the clients; Yahoo, hotmail are among those few.

In sum, I think that competition is necessary to perform “better” and also it helps you to strive to reach to the acme. Competition must be taken positively and must be seen as a tool for development.