competition benefits to consumers and producer

BIÊN BẢN HỌP NHÓM Đề tài: competition: benefits to consumers and producer Nhóm: Giáo viên hướng dẫn: STT HỌ TÊN LỚP MSV NHIỆM VỤ I INTRODUCTION Competition is natural and very important in the market We should see competition as a good thing and more importantly, as a vital aspect to economic growth Competition is necessary, in fact it’s natural Competition may be threats at times, but almost it is good for companies especially for consumers Competition in the world of business is commonly viewed in a negative light, but doesn’t have to be a case Competition can be a good thing for you, and particularly your customer Competition is not only good for business, it’s good for consumers This is so because consumers get the opportunity to pick and choose who gets their money, time and attention II BODY Concept of competition Competition is a natural phenomenon, is the conflict between individuals who share the same habitat since they are attending to a certain object In economic activity, competition is a rivalry between economic agents (producers, consumers) to win the better position in producing, contributing and consuming goods to obtain the best interests Competition can occur between producers and consumers (the producers want to sell expensive, consumers want to buy cheap); between consumers together to buy goods cheaper, better, between those who produce made to have better conditions in the production and consumption There are many forms of competition: competitive price (discounts,…) or non-price (advertising,…) 2 Why we need competition 2.1 Promote growth: Competition is fundamental, core plays an important role in promoting the growth of businesses and the national economy Competition is the root of the economy for sustainable development, is a vital factor in ensuring market economy So, the construction of a comprehensive competition policy is indispensable requirement for all countries, including Vietnam Competition is an opportunity for us to find new inventions and modern, serves our life Creating machines replace manual labor increases labor productivity, economic growth Example: by introducing proper competition policy, the Australian’s GDP increased by 2.5% in the 90s of last century 2.2 Progress of human civilization: In the market economy today, if there is no reasonable competition policy businesses risk being left behind and lead to bankruptcy The formulation of appropriate competition policies to help businesses grow and survive in the market Economic development creates opportunities for Vietnam enterprises go global to assert themselves and to compete with other nations Bring Vietnam national identity to all over the world Confirms longstanding cultural value of water rice civilization and people of Vietnam 2.3 Increase creativity: To survive in today's society, we always have to compete But competition here is competitive "gray matter" - Competition is an opportunity for us to stimulate creativity Innovative to survive and develop Innovation to create competitive advantages, promote growth -We compete to assert themselves at work, in social relationships At work, competition is constantly learning, search, creative That help us to understand and more loved our job Especially competition helps us advance in their careers Business always require businesses constantly invent new products, good quality, to meet the increasing demands of customers 2.4 Promote opportunity and try harder to succeed It forces manufacturers to dynamic, responsive, active skill improvement, technical innovation, applied science and technology, complete organizational structure of management to enhance productivity and efficiency economy In addition, businesses are always looking for ways to improve the playback products, changing the style, design, effective use of resources to reduce costs and improve quality, service and creating competitive Intense competition helps businesses demonstrate bravery position and market stability So to be successful, businesses need to seize, take advantage of opportunities, available resources, trying to create more value material wealth and spiritual better meet the increasing demands of consumers true 2.5 Competition to create a more exciting life Imagine life without competition will dull to what extent Nothing developed, and human needs has always been so, not change, not require something better Manufacturers always stalled, not product innovation, not positive innovation Thereby leading to an underdeveloped society, not sustainable, competitive now plays extremely important role It promotes business development production, forcing people to explore, creative, leading to exciting and engrossed in society How product and consumer benefit from the competition 3.1 Benefits to consumers from the competition Competition is the precondition of free-enterprise system since the more businesses are competing with each other, the more products or services with higher quality will be provided consumers In other words, competition gives the consumers the best values for their money When the competitors enter the market from all sides, consumers will get more benefits from that competition because the competitors will put pressure on price, quality, design, technologies It helps consumers more opportunities in choosing products or services The benefits consumers are enjoyed include: 3.1.1 Lower Prices One common company’s method use is to offer lower prices than the competition, which benefits the consumer Lower prices may come in the form of special sales promotions, such as coupons or discounts, or the implementation of a pricing strategy where lower prices are an everyday occurrence 3.1.2 Wider choice In a competitive market, businesses will try to make their products different from their competitor This results in greater choice – so consumers can selectthe product that offers the right balance between price and quality A competitive market means that there will be many suppliers for similar products As there are more and more suppliers in the market, the customers will have much more choices When monopolistic competition exists in the market, consumers usually have a few choices, so they have to be bound about product,even if its quality is appropriate with its price Electricity market in Vietnam is atypical example for monopoly In order to bring to customers best benefit, a competitive market with many competitors is necessary because it helps customers have much more choices for their demand, not be depended on unique suppliers 3.1.3 Better after sales service A competitive economic system benefits the consumer in better quality of service Companies that may not be able to beat their competitors on price can instead focus on delivering superior customer service to attract and retain customers Consumers often shun even a quality product because of poor aftersales support For the company, strong customer service can lead to customer loyalty The consumer benefits by being "taken care of" by the company 3.1.4 The better quality of products If companies compete, the competition will promote the markdown of their products, the enhancement of their services, and the improvement of their products ability The competition among them enable the consumers to select a product or products whatever they want As you can see in the above illustration, consumers receive various benefits from competition, for example, between cell phone carriers in terms of quality improvement, such as light in weight and smaller in size, performance improvement in electronic mail and cameras and service improvement, and price reduction in telephone bills 3.1.5 Get more information about products to make informed decisions In competition, manufacturers have to deliver information about their product as much as they can, to get an expression of their customer and persuade them So if we were the customer, we will have more information to compare and then we have good decisions 3.1.6 Can be given free samples to try As all you know, consumers have many options when choosing products So if one company want to get your priority, they have to try to be different And one way is to give the customer to try the product An example: sometimes, at our university, we received a free sample of one product, and of course, we try it, right? So if you like this product at the first time, maybe you’ll pay your money to buy it, right? So it’s good for consumers to try a new product 3.2 Benefits to producers from the competition 3.2.1 Helps identify potential threats to your business You are able to learn from other competitors what works and what doesn’t By learning this you will be able to decipher what plans and strategies or even products would be detrimental to your business They also provide valuable market insight, and force you to keep your product strategies fresh 3.2.2 Identify your strengths and weaknesses you may not always know what your strengths and weaknesses are until your competition points it out Competition helps narrow your focus a little and concentrate on what you’re really good at that your competition isn’t You are enabled to study your strengths and weaknesses Your weaknesses help you become better, while your strength drives you harder to achieve more 3.2.3 Innovation Is Fostered Innovative Thinking Competition makes you think more innovatively which is necessary for the growth of your business Innovation is important to you and your company because competition makes you constantly innovate When your business is number one or the only one, innovation tends to be ignored Innovation is incredibly important and is woven into the fabric of what great businesses Indeed when you have various customers you have a huge task to always serve Competition makes it very mandatory to keep serving and seeking new ways to serve your customers If you don’t keep up, you will be left behind and possibly out of business There is nothing quite like a competitor to motivate you to greater It isn’t about who gets the most market share, or who gets the most revenue, it is about who gives the most value and creates the biggest change in the world (to your market or target group) 3.2.4 Motivate you to reach a higher standard of customer service You might not focus much on quality of service you deliver if there is no competition As there is no other go for your customers, your products might get a boost in the market though customers are not actually satisfied with your service Quality of service is a key to customer satisfaction When competitors are around you, you would be forced to provide better quality service This will lead to more customer satisfaction which of course benefits you in long term 3.2.5 Better Knowledge about Customer Preferences As far as there is high competition, you get better information about customer preferences or requirements When your competitors make more profit than you, it means that they have adopted some great techniques to attract customers It could be better service, low prices etc So, you can study strategies that your competitors adopted which makes them successful Thus, you can easily know the pulse of your customers and this can be utilized to make your business successful In short, you get better ideas that you can make use of 3.2.6 Better Motivation To stand out from competition, you always need to be highly motivated and try to remain as a better business owner in the industry You really become proactive, alert, creative and above all focused You stop being complacent and always think of better ways to satisfy your customers You never wish to go down and you become a real hard working at the same time smart individual though it might be to stand out from the competition You try to reinforce your strengths and overcome your weaknesses Altogether, you become highly motivated to achieve great heights III CONCLUSION Competition brings lots of benefits, especially the benefits for consumers The manufacturers must find out the ways to make higher quality and more eyecatching products with lower cost and higher technology to meet the tastes of consumers To benefit from competition, companies and consumers need to be active especially companies must find the ways to satisfy consumers’ needs Competition forced the producers to be active, responsive, better capture consumer demand, improve skills actively, constantly improving technical progress applies, the successful research latest in production and perfect way of organizing production, the production management to improve productivity, quality and economic efficiency  ... obtain the best interests Competition can occur between producers and consumers (the producers want to sell expensive, consumers want to buy cheap); between consumers together to buy goods cheaper,... tastes of consumers To benefit from competition, companies and consumers need to be active especially companies must find the ways to satisfy consumers needs Competition forced the producers to be... very mandatory to keep serving and seeking new ways to serve your customers If you don’t keep up, you will be left behind and possibly out of business There is nothing quite like a competitor to