COMPETITION IN THE PRODUCT MARKET
Competition is a positive sum game and not a zero sum game. Increased competition can increase shareholder and consumer welfare. Competition provides strong incentives for performance. It aids in defending and expanding market share. It also helps in the provision of accurate information to measure performance, that is, it increases transparency in all operations. Competition to win market share drives greater efficiency and innovation. It passes on lower prices to consumers and eliminates monopoly rents. All this ultimately benefits the consumer.
Impact on management is such that there is a need to actively drive costs down. Benchmark performance measures are available through reference to competitors unlike ...
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