2712 words (11 pages) Essay . The other players are talented enough to get a contract but few of them ever become legends. Information technology has had a major impact on various aspects of businesses. Competition in business occurs when many firms sell identical products and act independently to supply their products to the same group of consumers. When I articulate this approach to business to my colleagues and students they nod along merrily agreeing with everything I have to say. But by having this ideal in mind, the concept of simultaneous value creation for all stakeholders, without the need for trade-offs, is crucial for achieving successful and meaningful social responsibility practices. Competition also can help businesses identify consumers’ needs—and then develop new products or services to meet them. Imagine a workplace where you are the only employee. How Committed are your Customers to Social Responsibility? I would love to hear what you have to say to continue the exploration of this subject further. Competition signals strong consumer demand. I appreciate it is not always this simple and sometimes benefiting all stakeholders simultaneously is extremely difficult and even impossible in some cases. In order to be an effective Servant Leader Greenleaf proposes that you must…, Your email address will not be published. The non-competitive approach outlined above is drastically narrow-minded and would be ultimately short-lived. All companies face competition, regardless of the market in which they operate. Once you are world class the world will seek your services. But these changes don’t just happen overnight and without significant effort on the part of the businesses. But these changes don’t just happen overnight and without significant effort on the part of the businesses. This is a great way to gain an understanding of where to put your content, what they want, and how they like it … Since there are two distinct forms of competition, it is easy to see how each type leads to either advantages or disadvantages for a project team.The advantages of encouraging positive competition among team members greatly enhance the likelihood that a project team is successful. Posted: (1 days ago) Competition has significant impact in business and it applies both internally and externally. You need to drive innovation and productivity in your sector in order to become world class at what you do. With competition around, you … CSR comes in many forms such as corporate citizenship, social performance and corporate conscience however regardless of…, It is logical to try and do everything better than everyone else when running your own business. This could even mean working in partnership on specialised projects and programmes with your competitors: the very people you are trying to out-perform. Competition makes you impatient; Success in anything requires patience because things take long to manifest in the physical world. Corporate social responsibility (CSR) is a form of corporate self-regulation which should be incorporated into the core operations of business. Both positive messages that show how competition law and enforcement helps business, as well as negative messages about the risks of non-compliance, are important and need to be communicated to encourage compliance. This is an important consideration when planning value creation for your competitors. This will increase the productivity of the business making them significantly more competitive in their sector. Business Study notes Competitive advantage; Competitiveness ; Jim Riley. Thus innovative thinking does not become a necessity which makes you inactive in thinking. Here’s how 1. When your competitors make more profit than you, it means that they have adopted some great techniques to attract customers. Search Categories . There was one major problem – the old cup marking system had stopped being ta… Competition & Economics. What a fantastic position to be in as a business and you have increased competition partly to thank for your success. The hard bit for a "competitive" business is to work out what you as a customer value – and then deliver that to you! I am based in Essex, England, and I have a particular interest in playfulness and humour in teaching and learning. For the most part, technological innovations speed up workflow and provide indispensable systems for organizing information. But if it benefits all stakeholders then its collective positive impact will be desired. This happens in every business and industry. It could be better service, low prices etc. You would never have to go the extra mile to prove yourself against your colleagues, to get that extra benefit and early promotion. After all your competitors are a major stakeholder in your business. Over the last 4 years, Tim has written numerous articles on the topic and has been an active contributor in business forums. Competition decreases your market share and shrinks your customer base, especially if demand for your products or services is limited from the start. Competition may not be the only driving force behind price, quality and choice for consumers and it is certainly not the only driving force behind innovation and productivity – but it certainly plays its part. As there is no other go for your customers, your products might get a boost in the market though customers are not actually satisfied with your service. You could charge what you want without having to worry about the quality or choice you provide as you would be the only option available. These findings present strong implications for education, the workplace, and other real-world settings involving social interaction. positive impacts of competition. Cloud Computing . my family an essay on man euthanasia argumentative movie review french friendship proposal poetry globalization reflective essay cold war homeless the things they carried autism. People would want to work for, invest in, buy from and support your business all over the world. However, there are many positive aspects to competition and by learning about them, you can best be ready to use those benefits to your advantage. Tim enjoys blogging about business strategy and enterpreneurship. This applies for business as well as in your personal life: Keeps you alert Without competition, you’d be on cruise control, with no worries in the world. It makes them positive because they feel good being treated nice, being served well. There are thousands of professional players and then there are the big names — Kobe, Lebron, and Brady. Starbucks implemented new technology in the early 2000s that enabled baristas to enter an order in the POS system and a sticker with the order would print so that the barista at the espresso machine would know what drink to make. Thus, you can easily know the pulse of your customers and this can be utilized to make your business successful. This will lead to more customer satisfaction which of course benefits you in long term. Academic competition is advantageous when it challenges students to work harder on their studies and helps them get excited about academic content. Teachers often use team-based competitions to make academic material more interesting and engaging. The interests of all your stakeholders are interlinked and by helping one you will often be helping another. Apart from being a rather unethical way of running a business this simply isn’t an effective business model for the long-term. The fact is that competition benefits not only consumers, but also businesses in different ways. It got an inflow of new subscribers and the positive feedback effects came now in with a full force. Not necessarily, and I would like to argue that creating value for your competitors can be of benefit to your business and your other associated stakeholders. Working efficiently will allow a business to keep prices low and maximise their available resources. A competitive market drives innovation as each individual business strives to gain a competitive advantage. Competition is wasteful without the goal of being the best. You would be stuck in a rut, never having the zeal to do better … Remember, No One Succeeds Alone, Wait Until They Get a Load of You: Storytelling & Community Building, Three Poker-Related Analogies for Startups, Tips For The Professional To Make Working Away From Home A Little Easier. Impact of Competition in Business - Startup Biz Hub. But unfortunately it is extremely difficult to achieve as you will often find yourself spread too thinly across too many areas. If actions only benefit your competitors and penalises other stakeholders then it is not an action you would want to take. You may still think that lack of competition would be a whole lot easier. Competing will truly put your skills to the test and push you out of your comfort zone! Share: Share on Facebook Share on Twitter Share on Linkedin Share on Google Share by email. Competition makes you think more innovatively which is necessary for the growth of your business. Business systems have reached the point where it's difficult to imagine operating even a small company without basic technology such as desktop computers to receive email and keep records. Employees will be forced to think creativel… Picture, for instance, that you’re about to interview for a position. By not embracing competition and being willing to evolve within your sector as choice, quality and price dictates, you will be unlikely to generate the innovation and productivity that is required to substantially expand and grow your business. In short, you get better ideas that you can make use of. At least during stressful times of business, business people think that it would have been better if there is no competition in business. Therefore, each business will have to differentiate itself from the crowd and there are three typical ways this can be achieved. #1. Building Your Brand, Marketing Professional Services, Referral Building. Quality of service is a key to customer satisfaction. The greatest players do whatever it takes to get ahead. If you create value for your competitors it will make your business sector more competitive overall. positive impacts of competition Essay Examples. This style of leadership is sometimes referred to as the classic or traditional approach to leadership. But if there are particular situations where staff collaboration, sharing of finances or referral of customers is mutually beneficial then collaboration with competitors will support the growth of the sector as a whole benefiting everyone. You would have no one to compete with and all the customers to yourself. It involves the leader retaining all the power and leading by instruction. 3. The concept of social responsibility in business involves making a positive contribution to society as a whole. Creating value for your competitors can drive innovation and productivity in your business sector. Instead it much more favourable to do one thing better than everyone else. You might have to adopt new technologies or business strategies to stand out from competition. You try to reinforce your strengths and overcome your weaknesses. Many small businesses do tend to move backward because they start out trying to do too much too quickly and it is within these instances that we see this loss occur due to of their … Innovation made those players obsolete. In this article, we highlight the major concerns and strategies businesses are taking during these troubling times. Welcome to the Leadership Styles Blog Series – today we will be exploring Autocratic Leadership. Let’s take a look at some of these here. Suppose, yours is the only business in a particular industry and of course you have complete control of the market. Jim co-founded tutor2u alongside his twin brother Geoff! A competitive market can also force you to lower your prices to stay competitive, decreasing your return on each item you produce and sell. Increases the demand:A healthy competition often leads to investment in more marketing activities by different players, which eventually increases the overall demand for the product in the market. Competition is to be considered as an important aspect of economic growth. We tend to think that competition of any kind is bad for us. According to Business Case Studies, the presence of competitors helps to drive down the profit that a firm can make. However, competition makes you impatient because it makes you desire quick progress so that you beat your rival. From generating referrals to coaching your network to building a killer website, we love seeing solo professionals succeed. You never wish to go down and you become a real hard working at the same time smart individual though it might be to stand out from the competition. Some stores reported regular failures of their system, meaning they didn’t have labels being printed and had to revert to their previous cup marking system. When making decisions business leaders should ask themselves the following question, “If I take this particular action, will all my stakeholders benefit?” If the answer is ‘yes’ then the right decision has been made. But there is a case for supporting your competitors when specific situations arise that will provide mutual benefits. Print page. This article will explore qualitative and quantitative data and discuss how…, For CSR to work effectively it needs to be placed at the very core of all business operations. Required fields are marked *. Employees will be forced to think creatively and work innovatively to continuously improve within their sector. Boosts innovation:Competition keeps the business on the toes and makes it imperative for it to innovate and improve. You may be able to get away with a non-competitive market for a while but sooner or later it will become competitive and when it does you had better be in a position to respond. You are the only option for your customers and they have to be satisfied with what you provide whether it is service or product. 7 Positives of Competition – INeedMotivation. 1st Jan 1970 Business Reference this Share this: Facebook Twitter Reddit LinkedIn WhatsApp These days, different businesses are involved in different kind of activities, so different kinds of people are involved in starting those businesses initially. One of the central questions in economics is the effect of competition on prices. To stand out from competition, you always need to be highly motivated and try to remain as a better business owner in the industry. I am a teacher, education leader, researcher, writer and public speaker on education-related topics. In new markets, this is an opportunity to promote an … Innovation and productivity in business results in overall economic growth: regionally, nationally and internationally. But, this thought arises because of lack of knowledge on how to utilize competition for the growth of your business. Get uncomfortable! When you consider the secondary benefits of a competitive market and the associated economic growth, supporting a non-competitive market significantly limits your business’ potential for growth. This is the underlying…, One of the most commonly asked questions I hear when teaching business and management topics is, “What’s the difference between a business’ purpose, vision and mission.” One of the main reasons these three terms are often misunderstood is due to the fact that many businesses use them interchangeably. The concept of cloud computing is immensely popular among businesses owing to the efficiency in business operations that it provides. They might even remember vinyl records or eight-track tapes! These benefits include increased productivity resulting from cooperative teamwork and mutual efforts. Customer Intimacy, Product Leadership or Operational Excellence – Pick one and don’t be greedy! They promote good business practices and attempt to instil a transparent and fair competition culture. Suppose, yours is the only business in a particular industry and of course you have complete control of the market. By acknowledging that you want to compete, it means that you have set a new goal for yourself to achieve. Using Qualitative and Quantitative Data to Make Decisions in Business, Purpose, Vision and Mission: Incorporating Social Responsibility. Competition is what keeps us moving forward. Soloville is dedicated to helping solopreneurs and other small firm owners think big and take their firms to the next level. Aside from blogging, Tim works at customgear.com.au, a company specialising in promotional products. In a competitive market prices will be kept low, choice will be high and quality will be improved. The Impact of COVID-19 on Businesses COVID-19 has affected all industries and organizations are seeing the impact it has on their business. In order to achieve lower prices, increased choice and improved quality businesses need to work more innovatively and productively. According to education professors Thomas Go… It can be harnessed in a productive way for teams, but it can also be incredibly damaging and detrimental to the culture of a team or company. When you follow your competition, you’ll have an opportunity to observe how competitors affect your business, your audience and the marketplace your audience enjoys hanging out in. And, you as a company will treat your customers nice, because otherwise they will … It provides validation for what you are doing. Posted: (2 days ago) When most think of competition, they do not associate it with something that can be beneficial. 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