Competition Between Companies

For years some companies kick in struggled to be and to remain the best. To do this they had to go through advertising their products televisions, radio, internet and sports. This is called ambition the main enjoyment for this is mainly to attract customers. These procedures can benefit but also be harmful towards the guild. Thus brings the main concern of this essay which shall discus both(prenominal) sides of this situation opposing and supporting it. Firstly, bell ringer quality of products roughtimes does non matter to consumers just as long as it is affordable.For instance on that point ar many varieties of brands such as Nike, Adidas, Coca pinhead and so forth. Yet commercials show all these products and companies do not realize that the outlay of the product gets higher as the cost of advertising contributes to the products cost and then making it expensive. This leads consumers shopping elsewhere for instance, MARANELLO Manufacturers of super sports cars have j ust announced a host of new models, but many of them may not reach the showrooms, as the global financial crisis hits a customer incision previously immune to economic downturns. Haupt, 2009 1) This statement proves that consumers prefer cheaper products than fancy cars as it is too expensive. Further more(prenominal) on flexibility Flexibility means the partys ability to respond to changes (Stevenson, 2007 38). These can be seasonal changes winter, summertime or maybe economical changes. Nevertheless they also contribute to the accompanys competitiveness hence leads sometimes to price wars. Take for exemplar Adverse weather conditions could reduce the command for our products.The sales of our products are influenced to some extent by weather conditions in the markets in which we operate remarkably cold or rainy weather during the summer months may have a temporary effect on the demand for our Products and contribute to get off sales, which could have an adverse effect on ou r results of operations for such periods. (Coca dope company, 2009 6) This explains that during competition companies are really flexible therefore should be spruce and find ways to be the best thus sometimes glowering the products cost by forty percentage as to keep up with the market.This incident shows that companies such as coca plant cola are overdoing it thus facing a major lose. Moreover on location, during competition companies assist for a marketable location. From here they start of by formulaing at the customers convenience like closest to shop thus less travel depreciate for consumer. However they dont look at the side as when location of company is way herd other customers get out shop elsewhere due to less put to park cars and so forth. Furthermore other companies go to famous impertinent countries or new location as their products are in demand over there.Yet as foreign companies they must find ways to accede their production thus using advertisement agai n. In the end both companies, will lose a lot of profit. This same case happened to Toyota tally in his writing of Ford outsells GM, Toyota in February sales, J. Ewing (2010 1) claims that while Toyota and Honda where busy competing in America, another company called Ford which is originally an American car furrow took over by most recently, during the summer last year 2009. Thus, departure Toyota to report a record annual net loss of 4. billion, this tough luck of Toyotas occurred as it did not realize that it was consuming too many expenses hence contributing to another disadvantage for companies when they compete. However these are uncoiled yet if considering another side to this argument, these may show the disadvantages of competition, but the advantages outweighs it as competition actually promotes the brand quality, flexibility and locations. In addition to punctuate quality, consumers always buy the best as they believe it is worth the expense as it last for a very lo ng time.Yet how do the consumer turn in which brand is the best simply as companies compete they broadcast the up-to-the-minute shoes, bikes, food and so forth. From here consumers try and differentiate one company after another due to the quality of its product. Take for example word base (2007) states that Honda and Toyota humps America wants fuel-efficient vehicles. This case made the two companies work effortful thus producing a vehicle that gets more and more mile per gallon. It is very expensive but a lot of people are time lag in line to get this product.This example shows that consumers go for the best brand quality no matter what. Another point is Flexibility companies know that season changes thus consumers demands also changes. Therefore Coca cola and Pepsi two competing companies produce besides soft drinks, water, ice tea and so forth This was to resolve the problem they faced during seasonal change that their soft drinks coca cola or Pepsi sales decreased from th is solution they remarkably gloss over draw outd selling and earning profit as they produced other products which will be essential during that particular season.This is also the advantage of flexibility and competition to a company. Finally is the location, Companies compete for the best location as it ensures the flow of profits, by one marketable areas such as America are best places to locate business Thus most famous companies are regain there for instance Toyota number one and holding fifteen percent of Americans sales. Honda, Nike and Adidas all these companies also go to a marketable location thus becoming the most famous companies in the world.Therefore the competition expenses for good sight to place business is worth it, as it will eventually pay back the companies ten times the amount of money it has spent, just like Honda and Toyota which are now leading the world car manufacturing business. In conclusion the advantages of competition between companies when market ing products seems to be much favourable than the disadvantages hence, the practice should continue or be more creative with their competition strategies as the more competitive they are the more flow of profits there will be.