51. We ordinarily think, as the speaker does here, that the presence of competition is
always healthy for business because it sparks efficiency and innovation. While
competition is generally good for business in these respects, the speaker here ignores the
many problems that can accrue from attempting to keep up with or beat a competitor,
and that may be decidedly detrimental to a business.
Admittedly, competition among businesses can occasion all sorts of improved -
practices. The need for competitive product pricing can motivate effective micro-
management of production and marketing costs. Competition for market share can spark
invention and innovation in product design that lead to the cutting edge of technology.
External competition is known to inspire team spirit within an organization, thereby
yielding greater productivity. And competition can challenge a company to streamline
operations, thereby improving efficiency.
But taken too far, attempting to keep up with or beat competitors brings about
detrimental results for a company. In some cases, companies compromise product
quality by switching to inferior, less expensive materials in order to keep prices
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