Thursday, January 29, 2015

Competition in Business Can Be Lethal

Competition among members of the same species in a population over resources available in a particular area can become very fierce reaching a stage where not only does growth of the population slow down and even come to a total halt but actually start reversing and the population starts to decrease in number. If such competition becomes even more severe it may reach a point where total destruction of the population takes place and all members of the species in the specified area die.

In the business world, a similar pattern may show up as competition heats up within a specific market. First it becomes tougher and tougher for companies to grow in such market, then growth reverses. If this competition continues it can reach a point where the market ceases to be able to support such fierce competition among businesses and the whole 'population' of businesses operating within such market die completely. It is thus essential to realize the effects of competition and realize that not all competition is equal. The nature of competition and its effects can change depending on the stage at which such competition is relative to the market in which it is taking place.