PREP上的那道题
竞争者的出现对一个公司总是有好处的,因为竞争者会迫使公司不断改善他们自己。
The author argue that the presence of a competitor is always beneficial to a company.I agree with the author's general assertion that if the author can apply this assertion into more specific circumstances.It is true that competition, which forces companies to change theirselves in ways that improve their practices, is beneficial to the how society as a whole. However, for an individual company, competition is not always a stimuli that will make it more competitive. We can learn from the history that not all the companies can survive through the competitions.Provided the complexity of such an arguement, it is benificial to look into the argument in a case by case situation.
On one hand, one way that competition will benefit a company is that the presence of a competitor will make a company more efficient, both in manipulating resourses and organizing its staffs. The presence of competitors, which will expand the supply of goods in the market, will bring down the market price. If there is sufficient competitors in the market, the price will be brought down to one what the economist call perfect-competitive price, at which individual company can hardly make any profit. In order to maintain its position in the market, a company confronted with new competitors will be forced to reduce its costs and become more efficient. New production line might be introduce, new organizational structure might be established. It is not hard to tell that such a company will become more competitive after the presence of a competitor.
Moreover, it is easy to learn from our daily experience that an organization , no matter an business, an army or a country, is likely to degrade without the presence of competitors. Just like ancient civilizations like China and India who separated their selves from the world, while once prosperous, felt behind at the modern world, a company without competitors will also end up in a slow , non-creative organization whose products not longer attract comsumers.
However, provided all the benefits of competitions stated above, it is not sufficient to come to the conclusion that the presence of a competitor will always benefit a company. It is obvious that practically not all the companies can manage to competitions without quitting the market. For company that is especially vulnerable to competition, the presences of competitors is likely to discontinue its business before to force it to become more effective. If we think about this impact of competition, we can easily understand why the process of globalization that promotes international competition remains the most controversial issue of our world.
In conclusion, issue of whether the presence of a competitor will always be beneficial to a company is a complex one,
requiring subjective judgment, consequently, there are no easy or certain answers. In most situations, competition will improve a company’s performance by forcing it to be more effective. However, in situation that the author fail to consider, the presence of competitors can also eliminate a company that is not ready to compete.
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