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Why is competition important? 🤔
Many people complain about it, many learn from it, and many run away from it. But most don’t know the true meaning of business competition, its nature, types, and even importance.
What are the advantages and disadvantages?
📝Share your thoughts in the comments below.
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Ghulam Mustafa
Competition is the main reason for progress. Every business has competition and this makes them want to improve their product and service to be better than the competition.
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Before starting a business, I think the main benefit of competition is that it validate the market. After the business is going on it serves as a benchmark and to push you to do a better service / product. So overall it's a good thing. Of course there is also to much competition but it's less than what we usually think it is.
@robertomorais Although competition in business lessens individual market share, it can also force you to become a better business. It can be easy to rest on your laurels when you’re the only option. But, they say, “competition breeds excellence.” 😄
#1 reason: Making sure that you're always trying to improve your product and focus on users (if there's no competition, there's little incentive)
Think Apple with Apple store - their users are apps and they can continue to charge insane margins because for people using Apple products, there's no other way for them to access apps
Additionally, I completely agree with @robertomorais that in the beginning when you're initially building, you can learn from competition to see what worked and what didn't and build upon that. Often times, the first mover does NOT become the biggest player - because others are able to learn from their mistakes and build accoringly
The more competition, the more attention the niche get.
On top of that, then you can get inspired by competitors, and it's easy to see how you can stand out in the bunch.
I love competition, I think it's super healthy!
The advantage of competition is that it encourages you to do your best and be creative. When you compete against others, you can gain valuable insights into what you are doing right and what you are doing wrong. On the other side, in an industry with too much competition, your customers may be bombarded by all the advertising going on, and they might not be too keen to purchase anything at all.
Competition is good because it encourages companies to become more efficient and productive. Competition is bad because it encourages companies to cut corners and take unnecessary risks. It's a double-edged sword.