Competition is the attitude of being better than the the business firms hence leading to a healthy business environment based on factors of price, quality and services. Fair completion focuses on economic growth of a country. The crucial part of a successful business is to understand the strengths of the business, understanding competition and proper positioning. Through competition firms find the grounds to offer range of choices and variety of goods and services. Consumers benefit from competition since it keeps prices low and the high quality goods and services.

According to Liu & Fang (2011) journal competition make economy work by enforcing antitrust laws and it helps to guarantee that our markets are open and free. The government promotes health competition and anticompetitive business practices to make sure that consumers have access to quality goods and services and those businesses compete on the merits of their work. Trough difficult anticompetitive business practices, the government helps the society to ensure that consumers have choice in price, selection and services.

Also as per Liu & Fang(2011) the benefits of a firm give attention to the prevailing competition in the industry is that, competition provides critical driver of presentation and innovation. It benefits everyone by enabling to choose from variety of outstanding goods at affordable prices. Competition promotes adoption of innovation as businesses develop and new ideas flourish in the market place. Consumers gain the most from great competition because it encourages lower prices and diverse choice of goods.

According to Badar (2011) journal, paying attention to established market competition makes a firm to develop strategies to have many customers’ since firms in competitive industry battle with each other in an effort to earn more customers. One common method firm’s use is to offer lower prices than the other firms in the industry, which benefits the customers. Lower prices may come in form of special sales promotions or implementation of a pricing strategy

Having sufficient knowledge on competition in an industry help a firm to be inventive to introduce new product or introducing the existing product in a new variety. These efforts are kept by firms to attract the customers in order to outdo or keep in pace with the other competitors which can outcome in focus on innovation. A firm that produces a unique product providing the consumer with with a previously unavailable good which satisfy his or her need can gain a competitive edge and the firm benefits by an increase in revenue while the consumer benefit by improving the quality of life. (Dimitropoulos, 2011)

According to Makhaya, Mkwananzi & Roberts (2012) journal looking to understand competition in the market helps firms that may not be able to beat their competitors on price to focus on improving and providing superior customer services to attract and retain customers. By offering quality services, a firm can gratify its customers and thereby the firm can earn customer loyalty.

The importance of having interest to understanding competition in the industry is for the benefit of the firm to have adequate customer information in order to help them to make informed decisions. This makes the customer to feel more confident in making their buying decision a after comparing the firms` products and those of the other competitors. Having adequate information about the customer enable the firm to act in response appropriately to customer wishes and preferences hence being able to stand out in the competitive market

Having clear understanding of competition in the industry enable a firm to offer value added services in order to cope up with increasing competition in the industry. This enables the firm to differentiate itself by the value added services. Awareness of the level of competition gives a firm a challenge to improve its production technology to meet their target. Since customers today are aware about the latest and dependable technology, they prefer firms offering latest technology hence the firms face the challenge to upgrade their technology so as to serve their customers better. It is clear that it’s when a firm maintains the competitive standards in its products and services can stay alive in the competitive industry. Moreover when a firm is planning to get into competitive industry it has to study consumers` needs and preferences accordingly to enable it cope up with the competition. The firm has to upgrade itself to get acceptance from their customers. (Zott, Amit & Massa, 2011)

In conclusion, clear understanding of the prevailing competition is essential for the betterment and success of the firm in a competitive market. Also it aids in provision of high quality goods and services that aim at meeting customer needs and preferences adequately.

References

Badar, M. R. (2011). Factors Causing Stress and Impact on Job Performance, †œA Case Study of Banks of Bahawalpur, Pakistanâ€. European Journal of Business and Management,3(12), 9-17.

Dimitropoulos, G. (2011). Collegial Rule-Implementation: Peer Reviews in Global Administrative Law. Available at SSRN 2169983.

Ellison, G. (2011). Is peer review in decline? Economic Inquiry, 49(3), 635-657.

Liu, X. Z., & Fang, H. (2012). Peer review and over-competitive research funding fostering mainstream opinion to monopoly. Part II. Scientometrics, 90(2), 607-616.

Makhaya, G., Mkwananzi, W., & Roberts, S. (2012). How should young institutions approach competition enforcement? Reflections on South Africa’s experience. South African Journal of International Affairs, 19(1), 43-64.

Zott, C., Amit, R., & Massa, L. (2011). The business model: recent developments and future research. Journal of management, 37(4), 1019-1042.