Grade 8C
News 1: Increase Competition Among Banks to Help Small Businesses
News 2: Energy: Is there enough competition in the market?
News 3: Cement firms to face more competition after inquiry
News 4: Can India's traditional family firms beat competition?
News 5: More competition in banking depends upon a more feasible plan
News 6: Competition Commission orders two healthcare groups to sell nine hospitals
News 7: European Commission rejects Google's latest proposals to settle antitrust case
News 8: Car insurance too high, says Competition Commission
News 9: Google, the EU and antitrust Search over: The third attempt at a settlement is likely to be the last
News 10: Ed Miliband to call for banking competition inquiry
Grade 8C
________________________________________________________________________
Case Studies based Question
Please read above mentioned news articles and use the information in preparing your article for the given question. I will appreciate if you use other referenced information in support of your answer.
In business competition encourages the firms to be more efficient, productive and cost effective. It helps them to gain greater market share, maintaing higher profits and boasting themselves as a market leader. But all this comes at a cost. Firms spends lots of resources to maintain their advantage over the rival firms through price and non price competing strategies.
Last date for Submission:
March 2nd, 2014
Please Write Your Response in 500 Words
Note:
1. Write with references.
2. Market evidences in support of your reasons.
3. Marks allocation for this article is 20
Rubrics for Marks.
A. Theoretical Explanation 5 Marks
B. References. 5 Marks [Use Harvard referencing style]
C. Use of Key words. 5 Marks
D. Examples from various Markets 5 Marks
One of a business' s objective is increase in size, market share, etc. So competition of firms will be very beneficial to the customers, because the firms do not want them to lose their customer, but they want to get more customer, so they will modify their product to be more advanced than other but with lower price. So the price will get lower and lower and the quality will be better and better.
ReplyDeleteThings that a company will do: first, they will give much more discounts, promotion , lottery , lucky dip, etc. Second, they can hire more salesman that will promote by giving brochure to the people at the malls, parks, schools, etc. If they hire less of them the other company will be more popular that yours. Third, they have to put more advertisement in tv, radio, newspaper and others. Forth, they will research as fast as they can so that they can be the first one that have already found about it. So the customer will not have other choice than buying yours.
The conclusion is that any competition between competitors of a firm will be very beneficial to the company, the company that lose may not survived. Thats all that I can write Reference:http://en.m.wikipedia.org/wiki/Competition Plagiarism: 95%
This comment has been removed by the author.
ReplyDeleteFirms can communicate the prices, avaliability and key features of their goods and services to consumers using advertisements. Advertising is the commercial promotion goods, services, companies ideas and each year many billion dollars are spent by firms on these promotions. This is because good advertisements can attract more consumers and can increase sales. If sales revenue increases enough it will increase the business profits and the cost of advertising.
ReplyDeleteIn conclusion, competition between firms benefit more for the consumers because they can get better products with lower prices and better after sales service. On the other hand, it will reduce the profit margin of the firms.
References:
- www.autobuild.co.id
- beritasatu.com
- otomotif.kampus.com
- modifikasi.com
- toyota.co.id
Originality: 86%
ReplyDeleteEconomically speaking, the term ‘competition’ refers to the rivalry among sellers, trying to get what every other seller, are seeking for at the same time – market shares, sales and profits. In most markets, competitions between businesses determine how industries operate. A competitive market may bring about more efficiency in the use of our scarce resource, if no market failures are present.
ReplyDeleteCompetitions among businesses, is what gives consumers varieties of choices, allowing them to select the best products that fits their budgets and needs. The simplest way for a firm to achieve higher market share is by offering the best and most affordable prices, to everyone. In a competitive market, prices are pushed down, making more products less costly and more affordable to everyone.
Besides the products getting less costly and all, competitions between businesses may encourage more businesses to improve their technology that’ll eventually lead to greater effects in the production, such as better quality products will be produced. To attract more consumers and gain higher market share in a competitive market, a business must be able to compete with other firms, in terms of quality. A business should therefore, improve the quality of goods and services they are selling.
Another key advantage of economic competition is the presence new discoveries in firms, or simply innovation. To deliver better products, business needs to be innovative in producing the product’s concepts, production methods, designs, or even services. In simple words, competition among businesses allows anyone with a specialized skill set to invent something better than what the market currently offers.
To a firm, economic competition may bring more innovative ideas in the production process of their products, which is good for a firm’s growth, as it increases the number of products a firm will be able to produce. When you cluster a business together, it is more likely that they will do better.
Unfortunately, economic competitions come with significant cost or disadvantages, particularly to firms and society. By giving consumers the best price, firms may be able to expand their market shares. However, it may lead to the minimal profit received by firms. When firms earn minimal profit, there will be less investments (increase in machinery, labours, etc.) made by firms. This will mean firms will have to work harder to expand their size, without borrowing capital.
Economic competitions may generate exploitation of workers, too. For instance, as price of goods and services are pushed down, businesses may move offshore in search of cheaper labour in order to stay in the competition. By doing so, firms may have done exploitation of workers and may have offered inadequate incentives to workers in LEDCs. Other economists argued that economic competition have result in the reduction of human resources used in production process, as machinery replaces what once was done by the workers.
Wrapping it up, I would have to say that an economic competition brings more benefit to customers than to the firms itself. Although at some point, competition forces firms to increase their efficiency and keep improving in their production process, which is good for the growth of a firm.
Anabelle – 8C
Originality (based on smallseotools.com): 100%
References:
• http://en.wikipedia.org/wiki/Competition_(economics)
• http://www.tutor2u.net/economics/content/topics/competition/competition_importance.htm
• http://uk.answers.yahoo.com/question/index?qid=20120430162841AAl030x
• http://education-portal.com/academy/lesson/what-is-a-competitive-environment-in-business-definition-examples-advantages-disadvantages.html#lesson
Based on businessdictionary.com the word Competition is the rivalry in which every seller tries sell what other sellers are selling at the same time, this means that there are more than one company producing the same product and competition plays a regulatory function in balancing demand and supply this means that two or more companies are making the same product which creates an industry for the product such as the car making industry, instant noodle industry and so on
ReplyDeleteThis had benefited the society because this means that there will be a lot of brands competing in the same market and this means that the consumers which is the society will have more options in buying the same product which means that they will have a lot to choose from for example:as we know there is a lot of brand in the instant noodle industry such as Indomie, Supermie, Mie Sedapp, Nissin Noodles, Sarimi and many more this means that the people will have a lot of noodle selection to choose from and this means that they can choose from a variety of products so they can choose the product that suits them the most and in this case people's choice may vary due to the taste,the flavor and etc
And for the firm because this is a product which is being made in large quantities, for the general society this means that they cut cost from mass production this brings us back to Economies of scale theory this means that the firms that produce the product can cut cost on making them,firms like Indofood who produces indomie can cut cost on maing every single pack of instant noodles
And for the government this means extra income because there is competition meaning there is more than one firm that is paying the government with tax so the government will have more money to build the country and the government doesn't encourage competition in the market just to get more money,more tax the government also encourage this so that there will be new developed product more entrepreneurship.
And as a conclusion to our discussion i think that increased competition will benefit all side which is the consumer,firms and government and the rest of the world society which consumes and produces the product
Reference:
-http://www.businessdictionary.com/definition/competition.html
-http://www.ask.com/question/how-do-consumers-benefit-from-business-competition
-http://www.huffingtonpost.com/jess-cornaggia/increase-competition-amon_b_4077929.html
Originality:100% based on smallseotools.com
What is Competition in Economics? Competition means rivalry among sellers/businesses that are trying to achieve goals such as an increase in profit, increased market share, and gaining more sales by varying the of the marketing elements, which are: price, product, distribution, and promotion. Merriam-Webster describes competition in business as "the effort of two or more parties acting independently to secure the business of a third party by offering favorable terms." Competition is seen as a state which produces gains for the whole economy. Though it can benefit the company, It may also lead to wasted effort and increased costs in some cases. In a small number of goods and services, the cost structure will mean that competition may be inefficient/disadvantageous. These situations are known as natural monopoly and are usually publicly provided or tightly regulated. The common example is water supplies. A competitive environment in business is the ever changing external system in which it competes. The more sellers of a similar/same product or service, the more competitive the environment in which you compete/fight for. Look at fast food restaurants - there are so many to choose from, so the competition is high. There are two types of competition, Direct competitors, and indirect competitors. Direct competitors are those firms selling the same type of product or service as your firm. For example, McDonalds is a direct competitor with Carls Junior. Indirect competitors are businesses that compete,even though they sell a different type of service or product. The product or service offered by the indirect competitors tend to be those that can be substituted for one another. If you have competition between two competing firms they both must offer good service or product with competitive price. Take an example, If one firm sells the same service for $90.00. The competition might sell his services for $85.00 thus offering the consumer a choice of paying $90.00 for the services or $85.00 for the same exact services.Thats the advantage, but if you have one firm and firm only offers a certain service or product, what incentives do they have to offer good services or prices? This firm can set the price of his services at $300.00, with no competition, you will have no choice, but to purchase the service they are selling, because there are no other competitors around to compete with. So by this, the one firm can monopolize the market. You either buy the service or to not buy the service , but whenever you decide the price will still be $300.00. In an event where the company get more customers than they anticipated, they could raise the price. You would still be required to buy their services no matter what price they raise the services for or how many times they raise the price. This is the disadvantage to consumers if they have no competitions around.
ReplyDeleteSources:
http://en.wikipedia.org/wiki/Competition_%28economics%29
http://education-portal.com/academy/lesson/what-is-a-competitive-environment-in-business-definition-examples-advantages-disadvantages.html#lesson
http://education-portal.com/academy/lesson/what-is-a-competitive-environment-in-business-definition-examples-advantages-disadvantages.html#lesson
Unique Content: 95%
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DeleteIn economics, the word ‘competition’ talks about the contention among sellers trying to attain such goals – increasing profits, sales volume and market share. Economic competition lays hold of in market, where supplier and buyers meet. Economic competition may bring both benefits and drawbacks.
ReplyDeleteAs many sellers are competing, consumers are given with a diversity of choices based on their needs, wants, taste and budget. A firm could increase in market share by proposing the most affordable price. Prices of goods are pushed down and become more affordable when there is competition in the market. Thus, consumers benefit from low-priced products.
The presence of competition between firms may elevate businesses to upgrade their technology that may lead to greater result in production. Thus, consumers reap benefits from the products with the modern and finest quality.
Competition between companies also brings out the presence of modernization or innovation. When there is innovation and invention among firms, they would put out better products with better procedure, idea and plan. Thereby, a firm with innovation is able to supply finer products than other firms, which everyone will benefit from.
Companies may increase the number of products produced due to innovation. Therefore, a company will experience the growth in size.
Besides those advantages, competition between firms comes with costs. Although affordable price given to consumers help increase the market share of a firm, it limits the amount of profit output. Less investments are made with minimum profit, thus firms would have to work harder to increase in size.
When firms reduce the price of goods in market, it will have to work hard to stay within the competition. Companies would find cheap labor instead to reduce it costs and keep up with the market and its competitors. This action might be known as exploitation of workers. It may bring poor motivation to those laborers working along the company.
All in all, both society and producers has its own loss and benefits. But I think there are more benefits to look to when speaking of competition between firms in the market.
Reference
http://en.wikipedia.org/wiki/Competition_(economics)
http://www.econlib.org/library/Enc/Competition.html
http://www.tutor2u.net/economics/content/topics/competition/competition_importance.htm
Originality : 98% (based on plagiarism.net)
Monique 8C
Competition between firms is, in most cases, good for the consumer. Competition encourages firms to use their resources efficiently to reduce their costs, lower their prices and develop new and better products and product features for consumers to choose from.
DeleteFirms will therefore compete for a market for a number of reasons: First one is to increase their customer base. More costumer means more revenue, firms compete with each other in the same market on price, the quality of their products, and promotional strategies to increase the costumers and satisfied them with their products. If the costs of increased competition do not rise as fast, it will boost profits for the business. Second is to increase sales. Increasing the number of consumers buying their product is not only the aim for a firm, a firm will also hope that existing customers will buy more and provide repeat custom. Sales revenue from products can be increased by cutting their prices. Except cutting prices of the products, promotions (free gifts) and advertisement can also increase the sales revenue. Promotional strategies can also create a brand image for a product and encourage customer loyalty. For example Mitsubishi gives free GPS and rear camera for the purchase of Mitsubishi outlander. Another example: Toyota release Toyota Bombastis promo where they give many prizes.
Third is to expand their market shares. The market share of a firm is calculated as its proportion of the total market volume or value of sales. Fourth is to achieve product superiority. There are two definitions of this. On one hand it refers to making a product that is clearly better than rival products for reason of prestige and profit. A superior product will help a firm to achieve objectives of generating sales and expanding market share. product superiority also means the product dominate a market by outselling all others, which is not necessarily because it is the best product on the market. The fifth reason is to enhance image. Competition between firms can improve the organizational image. Consumers' perceptions of an organization will tend to be reflected in sales. A poor image will reduce sales; a good image will help to expand sales and market share. For example toyota maintained their position as the best selling car in 2013 in the world. The last factor is to maximize profits. Ultimately the main reason from the above objectives of competition should achive profits for a firm to be successful.
There are two types of competition. The first one is Price competition. Price competition means competing to offer costumers prices for the best price as possible so the consumer will be more attracted to buy the company's products rather than the rival's products. Reducing the prices below the rival products is one way to increase the sales and its market shares at the expense of competing firms. However, the ability to reduce price will depend on the market conditions. For example: Nisan gives 0 degree interest or cashbank for the purchase of Nissan Grand Livina. Another example is Indonesia International Motor Show. Non price competition involves competing an all other product features other than the price of the product. It can involve the development of new product, product placements in diff terail outlets and at trade fairs, providing after sales care and promotional campaigns including advertising, attractive in store displays, running competitions and issuing consumer loyalty cards. Non price competition is important because consumer do not always compare product prices. They will also consider the quality of the product, ease of purchase, the level of consumer service and whether or not there is good after sale case if anything go wrong and they want to return back the product. For example : Honda released their latest low MPV Honda Mobilio.
This is the first one and the short one is the2 one. The originality is 86%.
Competition among banks is one of business strategies in order to attract more consumers whom will take part or involve in their bank. However, the impact of this particular competition could lead to some losses to either consumers or firms. On the other hand, those benefits and disadvantages to both sides will be discussed furthermore.
ReplyDeleteMy first opinion would be competition is more beneficial to consumers. If there is a competition between two firms, they both must offer good service or product with competitive price. Another way to increase sales in a competitive market is to add features that customers want, such as free shipping. Take for example competitions among banks, banks will try to expand access to cheaper credit, this means that to decrease the amount of interest. Customers are charged by interest when they borrow money from the bank and therefore, they will definitely look for the lowest interest among many banks. In this way, business will have to decrease their cost of capital in order to maintain profit.
In addition, competition among businesses leads to improvement in the quality of the product and services. It could also lead to a reduction in process. Consumers therefore able to purchase in relatively lower prices. It also encourages innovation. The benefit to the consumer is usually a larger selection for a particular product with perks. Aside from that, the ability to have a selection based on brand preference is a great attribute for the consumer. An example of competitive firms today is Apple and Samsung which are now leading the mobile phones market. Both companies are making even better and advanced products to be sold in the market worldwide.
Next will be the disadvantage of competition to firms and the factors that support the side of that competition is not beneficial to firms. One disadvantage is that competition between businesses may leave less money for social services. This is due to the goal that is set to compete with other businesses, not to provide services for the society. Investment wealth can also be disproportionately allocated into what earns the highest profit. In competition, firms would try anything to reduce their average costs, this include exploiting workers because firms tend to cut workforce so they can save cost.
Another disadvantage would be the reduce of human labour required to produce goods and services because they are replaced with machinery as they provide the company more advantages. Firms might also lose profits due to competition. Competitive firms will lower the price of their product as low as possible to attract consumers and therefore could lead to less profit.
In conclusion, competition is not always good and beneficial to either consumers or firms. Competition could also lead to several disadvantages to firms and losses of profit. Yet, the advantages of competition cannot be sustained definitely. The advantages and disadvantages of competition therefore have to deal with success and failure in reaching the market leader.
Resources:
http://www.studymode.com/subjects/advantages-and-disadvantages-of-competition-page1.html
http://www.ehow.com/info_8455003_advantages-disadvantages-economic-competition.html
Originality: 90%
Competition is the act of trying to win something those others also trying to win. Based on economic terms, competition is when seller is trying to get what other sellers are looking for at the same time. The things that they are competing for are the things like sales, profits, and market shares by offering the best price and quality of the goods and services that are to b given to consumers.
ReplyDeleteIn most cases, competition between some firms can really be beneficial for consumers. Firms would need consumers to be attracted to their products to be able to win in the competition. Competition would encourage firms to use their resources efficiently. By doing so, they will reduce their costs, and eventually, their products price will be cheaper.
Firms need to improve the quality of the products, like producing a more useful product with the best features to be able to compete in a competitive market and gain consumers’ trust. An improvement in technology may help firms to improve in quality of products. Improvements in technology will have positive effect on production methods and costs.
Another way to gain consumers’ trust is that firms will also need to produce a wide variety of products. And therefore, by having a wide variety of products to choose from with cheaper prices of products prices will benefit consumer. They will have a larger selection for a product. More products to choose from are helping consumers by increasing their satisfaction to buy the products of the firms.
Competition brings perfection to firms, as firms are likely will have something to learn from a competition among one another. Firms will definitely try their best to win market shares in a competitive market. Therefore, they could improve themselves by having improvements in technologies like machines. Workers are also likely to be trained from handling new and a more productive machine.
In a competition, there will always be someone losing. If a firm fails to provide a demanded good for consumers, there will no longer be in the market. They would not be able to make as much sales as they did before, and they might have loses. If the firm could not be able to come back to the market, they might end up failing. The firm could even go bankrupt with the loses made from the business.
Firms need to lower their prices so that consumers will buy their products and they will have increases in their market shares. However, firms sometimes may not be way far behind from the market and need to catch up. They may solve they problem by again reducing the prices of the products. It the price of the products are too low, firms will receive lower profits. It their profit margins keep getting low, they might also end up failing and bankrupt.
As the conclusion, consumers do have more benefits that firms in the competition among firms in a competitive market. However it the firm could manage well and have good strategies, they may also benefit from the competition. If firms don’t have any planning, they might fail and could end up bankrupt.
References:
1. Economic textbook and notebook
2. http://www.businessdictionary.com/definition/competition.html
3. http://wiki.answers.com/Q/How_does_the_consumer_benefit_from_business_competition?#slide=1
4. http://www.ehow.com/info_8455003_advantages-disadvantages-economic-competition.html
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Charlotte 8C
This comment has been removed by the author.
ReplyDeleteIf we look closely, firms don’t only produce and sell products, they compete against each other as well. What is the purpose of firms competing against each other? Well, to gain profit, market share, revenue and more. Also, they can increase their size, which will help and increase their popularity and reputation. However, when firms compete against each other, not only does their firm receive benefit but, the consumers will also experience them. Question is, what do consumer’s benefit from competition?
ReplyDeleteFirst of all, it lowers the price and cost of certain goods. For instance, a bread shop may have more customers than a shoe shop because their shop has a lower price than a shoe shop. By having lower price or creating events and making discounts, will attract more customers towards that company. This is why whenever companies have discounts they prefer showing it to people by having huge stickers on the walls and windows. It is to catch the customers attention. Also, when there are more customers, it will result more consumer’s demand, profit, revenue and market share. It will also gain their popularity because eventually, people will tell other people that this shop provides good quality with an appropriate price.
Last but not least, it improves choice and quality. When firms compete, one of their methods of defeating the other one is by producing a better product. They will increase their economies of scale and their productivity. They will also have a better span of control and chain of command in order to command and give instructions to their workers in how to make a better product with a high quality and utility. This is a benefit for the consumers, like us, because then we can have an excellent product that may last long and have a high utility. In fact, by having a good quality of product with an appropriate price, it will be easier for the company to export their products abroad.
Overall, these are the benefits that consumers will experience when firims are competing against each other. However, when firms do compete, the firm itself will also receive a couple of benefits as well.
One of them includes motivation. It will increase the workers motivation and enthusiasm to work harder. By then, managers or shareholders will start to make a reward for those who are working well. They will also create some non-wage benefits. For example, Google is a big company. The workers who are working there have a hard task, since it is a specialized job with those who have high skills in technologies and etc. The benefits that they get, however, is quite good. The land is big, they are able to rest whenever they want, and have other resources that entertain them and encourage them to work harder. However, even if they can rest as long as they want, they have this exception where they have to complete their task no matter what.
In conclusion, I agree that when firms compete, it will give a benefit to the consumers because of certain reasons such as, having a good quality of product with a low price. However, I also feel that the firms itself, will receive benefits when they are competing with a company that produces similar products as them.
Reference:
http://www.tca.ie/images/uploaded/documents/Booklet%20-%20Competition%20Benefits%20Everyone.pdf
http://www.quickmba.com/strategy/competitive-advantage/
ORIGINALITY : http://plagiarisma.net/ - 97%
Competition, in economic's perspective, is defined as the rivalry between firms in the attempt to get what other firms are aiming for the same time. There are a lot of ways why companies compete, such as an increase in customer base, sales, expanding in market share, achieve product superiority, better image, and to maximise their profits.
ReplyDeleteCompanies in a competitive environment struggles hard to earn the consumer's business. A sustained and 'powerful' method they used is to give lower prices than their competitor, which benefits the consumer. It may come in the forms such as special promotions (coupons or discounts), or the planning of a price strategy where lower prices occur everyday.
Competition can encourage a better innovation in the company, so that they could keep pace and overtake the market. Firms that produces unique products will provide the consumer, previously with unavailable benefit satisfying need, will gain the company competitive edge. Therefore, firms benefits by the increase in revenue, consumer benefits by improving their life quality.
Competitive economic systems benefits the consumer by providing better quality of service. Consumers demand to be taken care of by the company, as stakeholders, as they would expect to be served better. Companies that have less chances to beat their rivals on market price can focus on giving superior customer services. The company can also bring in customer loyalty. So in this case, it can benefit both sides.
Nothing motivates the company more than motivation. Individually, it is the motivation for workers to give their best to discover their potential. Socially, once employees compete together, the company will receive better results from them by matters of work. It will run effectively due to the improving work quality.
However, competition gives disadvantages to the firm itself, and its society. The firm will have to increase it's costs when they are providing wider ranges of product. As a result, they will earn less profit. Disadvantage comes more when firms decrease their prices in order to compete. If costs comes more than their total sales, they will be making a loss instead.
To reduce the costs, firms may exploit several of its labourers and employing efficient capital instead, leaving the workers unemployed and not supported. Competition involves the commitment to resources, which will have inherent costs to the company.
The more competition for a firm means there will be fewer sales as more of companies take on market share. It be hard for the firm to compete, and more importantly, survive in the market.
So, in most cases, competition between companies brings more benefits for the consumer than the firm. Competition, however, does encourages the firms to take their resources efficiently to reduce the costs, lower their prices and developing better and new products and product ranges for the consumers to choose from. But it isn't enough as they suffered more in the increase of costs and the control of production.
References:
- http://education-portal.com/academy/lesson/what-is-a-competitive-environment-in-business-definition-examples-advantages-disadvantages.html#lesson
- http://www.studymode.com/essays/Advantages-And-Disadvantages-Of-Competition-1564205.html
- http://www.ehow.com/list_6853690_benefits-competition-economics_.html
- Economics textbook
Originality: 100% (smallseotools.com)
Competition is rivalry in which every seller tries to get what other sellers are seeking at the same time such as sales, profit, and market share by offering the best offers of price, quality, and service. Where the market information flows freely, competition plays a regulatory function in making a balance of demand and supply.
ReplyDeleteIn order to win a competition, firms must do some things so they can defeat their opponents. Firms could produce a wider range of goods, with this, firms could compete better. People will be interested more in firms that have a wider range of goods because people can buy more things in that firm or stores such as Carrefour, Giants, and other retail stores.
There are benefits and disadvantages for consumers in a competition. First benefit is lower price, firms will compete to give the lowest price that is possible to satisfy the consumers, firms will make the price lower but they're not going to give prices too low. The lower the price, the more customers will buy the product, so the firm is able to compete better with other firms.
Second benefit is that we can have more opportunities to be employees. Firms will try to get more and more employees on order to be a bigger and better firm. Third is that we can have more choices of goods to be chosen.
However if there advantages, there must be also disadvantages for the consumers. First is consumers are going to have too much choices which going to make them confused which product to be chosen. Second is that consumers are going to get bombarded for the advertisements who are going to differentiate their companies with other firms.
If there is the advantages and disadvantages for consumers, there will also be the advantages and disadvantages for the producers. The advantage is that if the firm will win the competition, the firm will get much profits because they were able to give better products, prices, and quality.
The disadvantage is that if the firm doesn't win the competition and their product is cheap, they will make a very big loss and probably they will close their firm so they will not continue to make the loss. Another disadvantage is that they will have ti give out very many cost for producing goods and they will not make a loss their firm if there will be many buyer but if there will be less buyer, they will make a loss.
In my opinion, the producers would benefit more because they will make more profit if they won the competition and their buyer is much but if they will not win the competition and less buyer, they will make very very much loss and there will be a possibility to close their firm so they are not going to continue to make loss.
References: -http://www.businessdictionary.com/definition/competition.html
- http://www.smarta.com/advice/business-planning/market-research/37-ways-to-beat-your-competitors/
-http://uk.answers.yahoo.com/question/index?qid=20120430162841AAl030x
Fernando 8C
96% originality
ReplyDeleteSo we do know that firm usually compete with other firms to get like the highest position and level. Basically a competition occurs between two or more firms that compete to be in the first position where people demand most.
Competition between firms isnt always benefit for firms. Firms can have a hard time to think how, they need to think again and again of how to make them to the highest position with best production or service. But once the firm get the highest position, then it becomes benefit.
So that was just an introduction. Now we're actually talking about the benefits to consumer.
The number of people consuming the goods will also affect the level of business. So firms also need to attract consumers to buy their products. Consumers are always interested in products with lower price. This way, the different firms will try their best to set the best price by lowering it. So that people will be satisfied of having the advantage of having the product with low price.
Yet, once they arent able to attract consumers, this lead to a failure in the competition. That is why firms usually make improvements in the product(s). Ofcourse when a firm have better product, people wi be attracted. Because the better the product, the happier people are. And thats why they'll try to produce a better product. This leads to another competition. When the firms compete again and again, produce better quality and tech goods, then consumers can keep enjoying the improvements of the products.
Therefore, unique products can be produced and people can use it to show off.
So we can summarize that consumers can benefit from competition because firstly when businesses compete, and produce more and more unique products, we can have more choices to be choosen. Another thing is that businesses can find their way to lower the prices so that we can buy one of the lowest prices product with good quality.
Originality
www.plagiarisma.net : 93%
Source:
http://answers.yahoo.com/question/index?qid=20111028164505AASQwGQ
A business will always want their company to be succesfull. And also there will always be a competition between an industry for example a car industry such as honda and toyota are compete between each other in order to control the car industry all around an area. And for some person, based on them, a compatition is always beneficial for the consumers than to the firm itself.
ReplyDeleteIn my opinion, I agreed to that statement, we can see from the fact that business if business are competing among each other, they will give some advantages for the consumers such as while having competiiton, business will also competing of some things such as the price, the quality of the product, about their services to the consumer, and many more. All those things are affected to the consumers, because business will do the best for the consumers because the consumers are the one that can make the business lead in the competition which also in my opinion make the consumer is the one beneficial in competition.
While actually there are some advantages and disadvantages of competition. The advantages are allocating respurces in the most efficient, whether productively and allocatively since usually they want to make lower price than other business in the competition and one of the way to reduce the priceis to reduce the cost which can be done by taking all the uses of the raw materials properly, there is a maximum consumer surplus and economic welfare also no information failure since all knowledge are spread evenly because business wants their consumers to know all their information and so that they will be able to become the leader of the competition.
And there are also some disadvantages of competition such as no scope for economics of scale because of the high numbers of firm are there which can happen because usually, when a business want to start a new business it will do research and development which may based on the competiion of the product, if there are many competitors of a product usually may happen because that product is used by many people which make new business want to start their business by producing that type of product, undifferentiated products-all homogeneous because business will rather choose to produce a product that can be used by both male and female so they will have a greater market.
But actually, competition is not always beneficial for the consumers only, since ot may be beneficial also for that type of industry such as the example of article of competition commission orders two healthcare groups to sell nine hospitals, there it is stated by Mike Neeb, the chief executive and presidentof HCA International stated that Their ownerships of the hospitals encouragesthe competition and also drives a higher standard of care among hospital in UK.
In conclusion, a competition is not always beneficial for the consumer itself, since as what we can see form the example, it may be beneficial for other society that actually not the consumer of that goosa or services also beneficial for the comapny itself because they are able to reduce the cost and also don’t waste their raw metrials and use the fully function of their raw materials and machinery.
Resources :
• http://economicsassist.wordpress.com/2013/06/03/advantages-and-disadvantages-of-perfect-competition/
• http://www.theguardian.com/business/2014/jan/16/competition-commission-private-healthcare
Originality : 100 %
Competition or competitive market is when there is rivalry among firms to achieve and be the best. Competition happens in all industry. Competition brings benefit to consumer, government, and firm itself. These are benefits of competition to the consumers, government, and firm.
ReplyDeleteConsumers are far benefited from competition. The first main benefit is lower price. When firms compete, they will try to reach as much sales as possible. Reducing price is one of the ways to drive consumers to buy their product. Second benefit is a wider range of products. Wider range of products will encourage consumers to buy their product because they will have more freedom to pick the most suitable product for use. An example is Samsung mobile. Samsung has many phones that come in different sizes and function, which will give consumers more freedom to pick the most suitable phone for their own use. Third benefit is that there will be improvements to the quality of service for the consumers. With better service, consumers will mostly consume products or services with better service.
Government will be benefited from competition. With more competition, comes more sales. More sales will result in higher tax in the country. With more people paying tax, government will be able to increase income. Income can be used for a city’s facilities and other payables to make the city better.
Competition to the firm will increase potential for the firm. Firms will think harder to become better by keeping the cost low. Keeping the cost low is like maintaining the firm to stay in the competition. So, there will be a greater discipline for the firm to keep their cost low. A greater innovation or invention is what comes to a firm in a competition. In a competition, the company will think harder or try to innovate greater things for consumers. An example is from the mobile phone industry. As times pass, competition in the phone industry is still going on which results in greater innovation in the mobile phone industry. Back then, our phones only comes with keypads. Now comes greater innovation such as smartphones, touch screen, games, etc.
Although with competition, some firms can result in a huge loss due to competition. Some competitions can even be down due to competition. This is because those firms can’t survive in the competition. An example of those firms is Nokia. Nokia is a company from Finland, famous for being the leading phone company in the past years. Companies such as Apple and Samsung are now dominant in the phone industry. Innovations in technology in these companies are increasing which nowadays, people are demanding. Technologies such as the smartphone, touch screen, ways of phone securities, memory, and etc. are in these companies. Nokia can’t keep up with these companies. Due to that, they’re now down from the market.
My conclusion is that the firms, consumers, and government will be benefited and can also receive a disadvantage. In my point of view, the most benefited one will be the consumer compared to the government or the firm.
Kevin 8C
References:
• http://www.tutor2u.net/economics/content/topics/competition/competition_importance.htm
• http://www.amd.com/us/aboutamd/corporate-information/fair-and-open-competition/benefits/Pages/benefits-of-competition.aspx
100% originality
Firms compete so they can get more profit. They can get more profit by increasing the market share and make a higher name for themself. They can do this by providing the consumers with better and cheaper goods and services
ReplyDeleteFirms compete so they can increase market share. This will happen because they will produce higher quality goods and services at a cheaper price. This attracts people to buy their product instead of their competetor's product.
Consumers can benefit through this because if there's competition because they can get better quality goods and services. Firms will match their demans so that their customers don't buy their competetor's product
Competition will always benefit consumers more because it provides a cost for firms but a huge benefit to consumers. Without this there could be monopoly. Firms could sell their goods and services at a low quality for high prices.
One example for this is how Samsung approaches to the market threatening Apple. Apple used to give out 1 phone a year at very high prices but as soon as Samsung came some of their market share moved to them
They reacted by producing the 5C and keeping up a rate of 2 phones a year at a cheaper price. Samsung will respond by doing a similar thing to attract customers. We can see that if Samsung never came Apple would monopoly the market.
In conclusion with competittion customers are benifited. Without competition firms will benefit as they increase their profit margins.
100 % original
ReplyDeletehttp://news.cnet.com/8301-13579_3-57602184-37/apple-launches-iphone-5s-and-$99-iphone-5c-with-five-colors/
Economics: Rivalry in which every seller tries to get what other sellers are seeking at the same time: sales, profit, and market share by offering the best practicable combination of price, quality, and service. Where the market information flows freely, competition plays a regulatory function in balancing demand and supply
ReplyDeleteCompetition can encourage a better innovation in the company, so that they could keep pace and overtake the market. Firms that produces unique products will provide the consumer, previously with unavailable benefit satisfying need, will gain the company competitive edge. Therefore, firms benefits by the increase in revenue, consumer benefits by improving their life quality.
So if firms want to win the competition they need to make innovative and creative idea, or competing by pricing strategies which make the product more attractive for consumers, by competing it will make a new market for example apple launch 5s having a finger print detector and samsung also launch s5 which have face recognition.
For the firms the advantage is when they win the competition they will get many profit and brand loyalty , they can raise their market share also
In my opinion competition will benefit more to consumers because consumers is the one who choose and buy the firms product which they thing is good , because consumers can get better product with low price.
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