COMPETITION IN BUSINESS 5
Competitionhas been one of the most explored concepts in the contemporary humansociety. It underlines situation where two or more entities areengaged in rivalry for supremacy in a particular field. In themarket, business entities are always striving to enhance theircompetitiveness as this has a bearing on their sustainability andprofitability in the short-term and the long-term. However, questionshave been asked regarding the efficacy of competition in the modernworld. Indeed, there has been controversy over whether competition isdesirable or appropriate in the market. While there may be differingopinions, it is evident that competition is useful and necessary forhuman progress.
First,competition increases the level of productivity among businessentities and employees alike. Indeed, research has shown that thepresence of competitors who are also targeting similar goals such ashigher profits, larger market shares, a promotion or salary increasewould make an individual or entity to be focused, diligent and workoriented so as to achieve the goals at hand within the shortest timepossible so as to impress the consumers or the boss before anybodyelse. Indeed, this form of healthy competition allows for easing ofmanagement concerns regarding wasted monetary resources pertaining toidle labor.
Inaddition, competition would promote the level of efficiency inbusiness entities. Indeed, competition is known to push employees tomake every effort so as to come up with exceptional work that can beacceptable to the management and that would please and impress theconsumers. On the same note, competition would push the employees oreven business entities to adhere to proper management standards andmeet deadlines so as to avert the possibility for creating a negativeimpression, as well as allow them to gain the confidence and trust ofcustomers and the management.
Asa consequence, competition would allow companies to increase theirnet income, profits and revenues. The promotion of efficiency andhigher productivity would create a better reputation for the company,thereby allowing it to have higher sales and profits in thelong-term. On the same note, cooperative competition comes asextremely helpful, especially since there would be many peoplethinking and working together towards the attainment of a particulargoal rather than just one person. Scholars have noted that a teamthat has good dynamics would push every member to enhance his or herskills and productivity, thereby make a significant contribution tothe company and team.
Lastly,it would offer an opportunity for learning from competitors withinthe organization or even beyond. Business entities and organizationsalways incorporate talented individuals in varying areas ofspecialization and expertise. Scholars have acknowledged thatfriendly competition between employees would go a long way infostering an atmosphere that would be conducive for learning from thefailures and strengths of each other, thereby promoting the company’sbest interests.
However,there are still some cons or limitations to competition. First, theoutcomes of competition may not always be equitable. Indeed, marketeconomies always produce the things that people want rather than thethings that they need. For instance, rock stars make much more thanteachers simply because their fans willing to remit immense amountsof funds for recordings and concert tickets. This would not be areflection of the value that a particular commodity or service addsto the lives of individuals but rather the value that particulareconomies place on certain services.
Onthe same note, competition would make business entities orindividuals to be obsessed with winning rather than creating value.This is known to give rise to the use of unorthodox methods of doingbusiness or competing within organizations. Indeed, scholars havenoted that competition may, for example, result in employees makingevery effort to bring each other down. This often crops up ininstances where there is a known reward for emerging top or ahead ofthe pack. There have been instances, for example, where insuranceagents have “stolen” each others’ clients just so as to makethe highest amount of sales in the short-term and the long-term andget a promotion or an increase in their commission. Of course, it isunderstandable that bosses would welcome employees who areresult-oriented, but then, this should not be in instances where theemployees have their entire focus on the achievement of company goalseven if that means bringing each other down.
Onthe same note, competition often results in the elimination of teamspirit. Indeed, competition is known to bring out the selfish side ofindividuals, which may result in quite ugly consequences. Scholarshave acknowledged that when faced by competition, the self alwaysbecomes the protagonist, in which case any ideas pertaining to groupor team would almost always be automatically disregarded. This hasbeen seen as counterproductive considering that employees would belikely to work on varying goals rather than the unifying companygoal.
Nevertheless,these arguments would still not make competition undesirable orunwanted. Indeed, it is noteworthy that such the refinement ofbusiness activity and performance almost always surpasses thenegatives of competition. Competition always allows individuals andbusiness entities to learn from each other. Different businessentities even within the same field may use varying strategies toenhance their place in the market. This allows for the elimination ofstrategies that cannot work and the adoption of the effective andefficient strategies in both the short-term and the long-term. Thisonly happens when business entities are trying to be better than eachother. In addition, competition allows for enhanced efficiency in theutilization of resources. It has been well acknowledged thatresources, be they financial, human or even natural, are limited, inwhich case it becomes imperative that companies strive to or attainthe highest amounts of productivity from the resources. This wouldmean only using resources on the most productive aspects, which wouldsupport the goal of the company and satisfy the wants of theconsumers. This implies that operations would be streamlined andoutput maximized in the long-term and short-term. The minimization ofwastage results in a considerably more sustainable world. On the samenote, competition gives consumers a wide array of goods and servicesat the lowest prices. Companies and business entities are alwaysstriving to enhance their productivity and market share, which meansthat they provide the best commodities while offering them for thelowest prices so as to attract and retain customers. In this regard,competition would be beneficial to the consumers in the long run. Inessence, as much as vicious competition may be socially destructiveand ugly, it is usually useful and necessary for progress, triggeringdevelopment and continuous improvement in the economy.