Competition is an essential element for environment business healthy, as companies rely on competition as a means to assess their position within an industry, which is useful for the development of strategies for future growth and provides benchmarks in the financing business lenders and investors. However, a competitive environment also offers a variety of benefits for consumers :
Healthy competition in an industry can help control prices for consumers. In an environment where only one or two companies offer a product or service in particular, consumers may have little choice regarding the prices they pay. By contrast, in an environment where many companies compete for the same customer base, companies should carefully consider the prices to attract new customers and retain existing ones. As a result, customers can obtain products or services without having to worry about paying more than necessary.
Quality products and services
A competitive environment encourages companies to improve the quality of services and products to attract customers and maintain the viability of the business. Because customers can choose from several providers , companies that offer inferior products are quickly excluded from the market unless consumers seeking lower prices to focus on selling. A high level of competition forces providers to continually innovate to add value to their services and improve their range of products .
Companies in a competitive environment must go beyond just selling products and services to encourage repeat business and get referrals . Companies must provide customer service to ensure that buyers are satisfied with their purchases, and must respond quickly to consumer concerns. For a customer, business competition can increase the availability of a service attentive, both during and after the sale.
Incentives can help companies attract and retain customers, to maintain the viability of the business. The customer can take advantage of receiving offers, such as free or discounted products and services with an order. Companies in a competitive environment also offer discounts and other incentives for future purchases for your loyalty as a customer.