Sunday, January 11, 2015

Businesses Competing in the Wild

Organisms that are colonizing a rather empty habitat exhibit high rates of reproduction, smaller offspring size, high mortality rates and very little competition over available resources. Contrastingly, organisms living in a rather crowded habitat exhibit high competition, lower reproduction rates, larger offspring size, delayed reproduction and lower mortality rates excluding that caused by competition.

Businesses show similar patterns in the economy. A business that is 'colonizing' a new virgin market can rapidly dominate it 'reproducing' its product or services all over that fresh market. Its products do not have to be top quality, but they must be large in numbers. In contrast, a business attempting to survive in a highly competitive market needs to provide much higher quality products or services that are fewer in number in order to be able to withstand the fierce competition.