Why healthy c*mpet*tion is key for economic growth

A brawl of billionaires, courtesy of Tesla’s Elon Musk and Mark Zuckerberg of Meta, might entertain those of us who enjoy and practice mixed martial arts. For the record, I will be Team Elon if the match happens.

This metaphorical clash might be the apex of a corporate competition between the two.
Meta Zuckerberg’s creation of Thread has sparked reactions from Elon, who termed it a ‘metaphorical tapeworm’. Elon has stated that he intends to sue for Twitter’s intellectual property infringement. Is business competition healthy? Who stands to gain? Competition is critical to the creation and maintenance of a healthy economy. High costs, poor customer service, and a lack of innovation are characteristics of industries with little competition.

But in a competitive market, customers may get better goods and services for less money. Although competition is beneficial for customers, existing producers in the market dislike it. Some firms will be successful, while others won’t. Prices will stay low and innovation will continue as long as it is simple for new rivals to enter the market.

Competition between companies’ benefits consumers by allowing them to choose the right firm for their needs. If a company’s prices are too high, consumers can switch providers or choose a company with better products. Companies must prioritise customer care to avoid losing them to the competition.
When businesses are forced to compete with one another, they have to innovate to ensure their products are the best in a dynamic market.

Competition also motivates firms to fine-tune operations to function more effectively, lowering operating costs and keeping prices low.

The government can profit from competition because it encourages economic growth among businesses and protects consumers against price-fixing monopolies. Governments must ensure firms can compete on an even playing field since this will encourage them to invest in innovation and future growth.
You’ll win if you keep your rivals and friends close.

Learn more about your competitors than they do about themselves. Speak with the company’s employees and clients. In fact, it has been reported that some of the founding employees of Threads were formerly employed by Twitter. Be knowledgeable on what your competitor is doing, know some of their best practices, what they are going to do, and how they are doing it.

Another tactic is to focus on how you can benefit your customers. Study the rivals, but direct your attention, focus, and energy towards how you can serve your customers and meet their needs.
Thinking long-term rather than short-term is key to displace competition. Consider competing on more than just a product or one campaign with your competitors. Remember, as long as you win the war, don’t mind losing the battle! Have endurance and business cardio! In today’s extremely competitive business arena, businesses must be inventive to be competitive.

Rather than competing in an already-existing market sector, businesses can enter uncontested market sectors to develop a new market with an innovative product or service that answers an unmet customer need. Focusing on differentiation, value creation, and innovation is essential. If you share the same market segment, instead of competing, why not profit from your competition? You can offer a complimentary product to the same customer base.

To compete in today’s digital environment, we must invest in the appropriate technology tools. Technology may help streamline operations, increase client satisfaction, and flourish. It is critical to embrace technology from the start, and companies and individuals that do so will have a competitive advantage over others in the market.

— The writer is an Innovations Evangelist and a PhD candidate —[email protected]