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The Value Of Competition

So what is competition? Many people consider it the chance to beat someone else's brains in. To show that they are better than the other guy. Some companies today do all that they can to crush the competition. They buy them up or force them out. And of course it's their right to do such things. But really where would we be if we didn't have some competition?

Look at IBM for example. For decades they were the big guy. Hell they were nicknamed big blue of all things. And they felt they were invincible. Then one day during the 1990's they found that they weren't really that invincible. They'd lost their edge and were on the verge of bankruptcy. The little guys that they once swatted like flies have grown up. Companies like Apple Computer, Dell, and many others. IBM was saved but only in the nick of time. Today they are stronger than they have ever been. But now they have respect for their competition.

Companies like Target and Costco while not as big and mighty as Wal-Mart survive and thrive. They keep Wal-Mart on its toes each and every day. And even though Wal-Mart is great at giving us low prices many of the other things they do aren't so great. Costco has average employee wages that are twice what Wal-Mart's are. And Target offers a great selection of merchandise in stores that are usually cleaner and much easier to shop in. Are any of them perfect at what they do no. But because they have intense competition consumers benefit with better products, prices, and service.

Just look at the things that have happened to the former big 3 automakers. For years GM, Chrysler, and Ford have floundered. For decades they were so worried about each other that they didn't respect the Japanese. Today they are not even considered the big 3 anymoreas Toyota has moved in. They used to be able to use the slogan "Made in America" to appeal to us as American's who were tired of all the Japanese imports. Well guess what? Toyota is now "Made in America" too with manufacturing plants in the United States as well as Japan. Can America's original automakers rise back up? Sure they can and many hope they do. Because they can also push Toyota in exactly the same way by being better at what they do.

Competition is good for business. No matter how big or small the players are. If we have no one to compete against where is our incentive to do things better? Most people would would say that they would still put out a better product or service because the customer would demand it. That is not true and you should know it. Companies would continue to do exactly as they had always done. People need competition in business. It helps to put a fire in the belly and start the adrenalin flowing. Plus you know you love beating the other guy.

Article Source: http://www.newagelivingarticles.com

Cash Miller is an experienced entrepreneur and speaker who has spent over a decade as a small business owner. His years of experience in small business cover a variety of topics. If you are looking for more small business information you can go to www.smallbusinessdelivered.com

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