Does open economic competition help or hinder the growth and Progress of a company?

Answer 1

Before i proceed to answer you, it is important that you know that company growth means both money and resource gain. it is different from generalized profit maximization.

Open economic competition helps to foster the growth of and progress of a company. This is because:

1) when companies are allowed to compete without restriction from the government, they are more determined to adopt any strategy as a means of gaining more customers and increasing their overall market share. as such, these companies will be more likely to grow than when they are restricted by the government.

2) it gives room for innovation and creativity. since the competition is open, companies will be forced to develop new strategies that will not be easy for their competitors to imitate. as such, there will be high investment on innovation and creativity and this will enrich the company through high availability of corporate assets and new product development.

3) creates room for business partnership. since the competition is open (free and fair), two smaller companies that offer either similar or different products can combine together to market their products and attempt to gain customers from the bigger companies. as such, they will be able to combine money for marketing, development and new market penetration. in the long-run, both companies will be rewarded with tremendous growth.

4) equips the management and workforce with needed skills. since the management and workforce are involved in drafting new means to remain every competitive in the market, they will gain high experience and acquire new skills that will aid the overall growth of the company.

Thus, it can be concluded that open competition is good for the growth of the company as it offer the company with numerous benefits such as financial gains through new customer acquisition and increase in market share, and management capabilities through experience in management process.