Factors of Rivalry
In today’s economy, there is virtually no market that exists that has no competition what so ever. From the foods we eat, to the clothes we wear, to the cars we drive, to the water we drink, every company has some sort of competition. So let us focus on the big picture and zero into this subject. Competition is necessary for two reasons. First is to abolish the ideas of monopolization. Secondly, is due to the brainiac out there who believes that their product/ ideas are better than the existing product.
Due to the latter idea, competition is healthy because it gives the consumers options and also the right to have a product that is able to keep up with their daily lifestyles. So when newer companies come out with bigger and better ideas that their predecessors, rivalries build up as the mother company must stay at par to keep themselves in business. Now that we have the big picture for competition, lets zero in why rivalries can exists. Capital: When people decided to buy a product, one company is a winner and the rest are losers.
In essence if I go out and buy a Dell computer, my money ultimately ends up to the manufacturer Dell and Microsoft and not a computer conglomerate like Apple. Therefore my point being is that Dell and Microsoft gets capital that Apple could have gotten if the competition did not exist. Basically it all boils down to who gets the sale. Ideals: (I do not want to open a can of worms here) Something always boggles me why people pay for water, however since there is a market for it, there are competitors like Coca Cola, Aquafina and hundreds of others.
When the concept of bottled water was introduced, there was one company who ingeniously came up with the idea only to have a hundred other companies follow the same logic. Options: Rivalries usually start to occur when they gain popularity amongst the end consumer. Today’s consumer likes “a bang for their buck”, therefore they like to have options and all the other pretty little features that go along with it. Therefore an “arms race” of products are introduced as one company is introducing an updated product which is supposedly better than their competitors. Don’t believe me, wait until the end of this year and see the madness when the new Xbox and PS4 come out. )
Lastly, and my favorite are the advertisements that “bad mouth the competitors”. For example the ads better the Mac and Windows have been fierce. For example Apple comes out with their commercials of a tall, young, slender guy who “plays it cool” and has no problems with this software. The man representing Windows is a short, stubby, semi bald guy who is basically in outdated clothes having some sort of issue. This is a tactic used to entice a certain genre of individuals to buy a product while making their competitors look weaker.
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