Competition in Business: Benefits & Challenges of Marketplaces - Essay Sample

Introduction

Competition among business enterprises is good to some extent. In essence, competition is effective as it challenges every company involved in market places. In a market, if there ceases to be any form of competition, the business will lack a set standard. Without competition, businesses will not improve in areas that need to be strengthened. For instance, without competition, the organization may lack the knowledge of what they stand for both academically, physically, and mentally. If challenges exist, the business enterprise is challenged on various aspects that often lead to progression.

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Crime in the Society

The expectation set by the company may be too high in the organization, making the employee over-react by doing something fishy. For instance, if the employee fails to meet the ultimate goal set by the company in terms of productivity, they may neglect the interest of other employee's to yield the desired outcome. For that reason, an employee may be engaged in unethical acts such as sexual harassment and internet surfing to meet the desired outcome. The employee may be engaged in burning the midnight oil because of the competition set by the company. For that reason, the employees may become very uptight and jeopardized their social life with others by putting the company's interest forth. The employee needs a lot of time to rest and flexibility in their schedules to concentrate on their normal tasks at work.

In most instances, employees may sacrifice their eating, which renders them to be fatigue in the workplace. For that reason, employees might be strike by depression and unbalanced work life.

Summary of Facts

Arguably, it is important in business for an employer not to underestimate the opponent. For a business to thrive, there is a need to have a general idea of where the competitors are situated. The company must be aware of the growth rate of the rival companies in terms of net sales (Lee, Foo, Leong, & Ooi, 2016). The company must keep watch about their progress for them to beat the rivals in marketplaces.

If a company ignores the competition, the company is likely to perform poorly in terms of the revenue produced. For that reason, the company must have a better-recruiting strategy to dominate their niche market. The company can only compete effectively by valuing its employees as an essential market. In essence, the company gets better employees by having a better assessment record on hiring qualified personnel. However, most of the companies have failed miserably in recruiting the best candidates. For instance, in the United States, only a third of the organization assesses whether the recruitment process led to recruiting qualified persons.

Most companies affirm that they do not assess the effectiveness of the recruitment process because they believe that it is too difficult to measure a worker's performance (Lazzarini, 2015). The admission is surprising since the staff costs are the single biggest expenses. However, there are other simple things that employers can do, like following the performance of the employee in the company.

Actions

One of the best ways of solving the nightmare of standing out in the market places is getting the correct price. Pricing in any business revolves around business psychology. Such that, an employer should learn about the competition before they can set their own strategy. The company needs to identify the company that offers the best value of the price. The money set as the price has to be to the standard and have a competitive edge.

In this context, the company does not necessarily need to reduce the prices of the existing products for them to allure more customers. Arguably, a market is divided into three vital segments namely upper, middle, and lower class. A company needs to start by identifying the class it needs to target. Once the employers have recognized that, it will be easier for them to love the price.

The other strategy is to improve customer service. If the customers are delighted by what the company produces, they would probably prefer the services rendered by the businesses (Huda et al., 2019). The company can make loyal customers in the process. The customers eventually shall refer the people to their friends and family. In that regard, the company needs to hire people with a good understanding of the company's products and services.

Justification

In every business, there is a need for any organization to stand apart from competitors to register higher performance, profitability, and productivity (Bustinza, Bigdeli, Baines, & Elliot, 2015). In essence, a company needs to do additional features that can be its brands unique and distinguishable in the market places. The company through a better recruitment process can employee people from different cultures, origin, color, and sex. Once the company has established a devised workforce, they can easily be innovative. By having a unique brand in marketplaces, loyal customers can be allured. Thus, loyal customers can easily market the company goods to their friends and family. For those remarks, there is a need for researchers to study the ways in which a company can stand apart from the competitors to increase sales.

References

Bustinza, O. F., Bigdeli, A. Z., Baines, T., & Elliot, C. (2015). Servitization and competitive advantage: the importance of organizational structure and value chain position. Research-Technology Management, 58(5), 53-60.

Huda, M., Qodriah, S. L., Rismayadi, B., Hananto, A., Kardiyati, E. N., Ruskam, A., & Nasir, B. M. (2019). Towards Cooperative with Competitive Alliance: Insights into Performance Value in Social Entrepreneurship. In Creating Business Value and Competitive Advantage with Social Entrepreneurship (pp. 294-317). IGI Global.

Lazzarini, S. G. (2015). Strategizing by the government: Can industrial policy create firmlevel competitive advantage?. Strategic Management Journal, 36(1), 97-112.

Lee, V. H., Foo, A. T. L., Leong, L. Y., & Ooi, K. B. (2016). Can competitive advantage be achieved through knowledge management? A case study on SMEs. Expert Systems with Applications, 65, 136-151.