Competition

Competition is a key component to business. Competition is when two or more companies in the same market are competing to gain customers and support by making their product or service seem more desirable than the other guys’. Competition is why businesses are practically required to market and promote their products. It helps to regulate prices within a market and allow consumers to have a choice in what they want to buy. Without competition, there would be endless monopolies, which would lead to every company being able to dictate the price of a good or service. For example, say Apple was the only cell phone brand and had no competition. They currently sell the iPhone X for roughly $1,000. That may sound expensive now, but who’s to say that if they didn’t have to worry about people getting a cheaper option that it wouldn’t be even more expensive? We need competition in business to give consumers a variety of options to choose from as well as to maintain a reasonable price point. Without competition, there would be one company within every market that had complete control over the product or service and there would be no other alternative. This would force consumers to pay whatever price the company would be asking, as well as to live with whatever product the company is offering whether or not one would consider it ideal. Competition is crucial in the market and though it can make it harder to enter a market or start a business, it is 100% necessary to maintain balance within business.