Benefits Of Competition Among Firms Delivers Benefits And Performance Within Business

1354 Words Dec 7th, 2014 6 Pages
Competition is considered one of the main driving factors of innovation and performance within business. But before we can fully assess the benefits to society of competition between firms, we must first ask, what is competition? Competition has been described as the rivalry between firms selling similar products and services with the goal of achieving revenue, profit, and market-share growth.
This essay will answer the question, “Assess the extent to which competition among firms delivers benefits to society”. Through assessment and analyse of competition this essay will make a judgment on the impact of various types of competition, including perfect, imperfect, monopoly and oligopoly, for both the business along with the consumer. To illustrate and support theoretical ideas, concepts and policies, real life examples have been utilised, which will bringing to light key areas where society as a whole may benefit.
Competition is apparent on virtually every street, isle and shelf we look at these days, a simple example being that competition can even generate an entire aisle of breakfast cereal, washing powders and toothpaste etc. This is evident as The Global Competitiveness index has described the U.K in the following statement, “The country continues to have sophisticated (9th in world) and innovative (12th in world) businesses that are highly adept at harnessing the latest technologies for productivity improvements and operating in a very large market (it is…
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