51. We ordinarily think, as the speaker does here, that the presence of competition is & Y. a/ K* a$ H# v- V
always healthy for business because it sparks efficiency and innovation. While 9 a, a3 W. X# q0 y4 R
competition is generally good for business in these respects, the speaker here ignores the
' M1 K5 O) d+ l: t0 m% Emany problems that can accrue from attempting to keep up with or beat a competitor,
9 a( x* _6 ], V: N# [% Y( xand that may be decidedly detrimental to a business.* l; @# j' n0 U$ x- `: C
Admittedly, competition among businesses can occasion all sorts of improved -1 e* Y! B4 `7 ?- l
practices. The need for competitive product pricing can motivate effective micro-
- R8 K) }# j3 _0 g Amanagement of production and marketing costs. Competition for market share can spark
/ h4 ^. Z" n$ @1 W* z5 minvention and innovation in product design that lead to the cutting edge of technology.
4 U( [$ p \, b/ Z) w! I. _External competition is known to inspire team spirit within an organization, thereby
4 {. Z+ ~$ j; i1 Z; J: byielding greater productivity. And competition can challenge a company to streamline
9 V9 R; _" r" ?operations, thereby improving efficiency.0 T6 O% {6 @3 a8 F/ q
But taken too far, attempting to keep up with or beat competitors brings about
! ?5 ^' x7 x- K$ ?# `. Ydetrimental results for a company. In some cases, companies compromise product
3 D/ [4 V; e8 f- _- X6 uquality by switching to inferior, less expensive materials in order to keep prices
/ J9 \- `5 G' Hcompetitive. Other times, plant managers ignore important employee-safety measures
' P4 a# z7 U5 @1 L$ b0 Sjust to save money. And companies are even known to trade off consumer safety in the / z* g) A; F7 `* L, Z- h
interest of competition. Perhaps the paradigmatic case involved the Ford Pinto, where 5 e5 N W2 T/ @/ l3 T# {( T* i3 ?! J
Ford management rejected an inexpensive retrofit that would have saved hundreds of 6 M& O+ n" J( D/ Y. n6 R- P
lives in rear-end collisions, solely in order to shave a few dollars off the car's sticker 3 @2 s& H* j) n* q6 C6 |
price, thereby enhancing the car's competitiveness.
: @7 T2 y- G3 _* x* ^7 O Competition can even bring about large-scale social change that some consider 7 r" c0 g2 g: W& C0 G
undesirable. For instance, the emergence of large, efficient factory farms has resulted in
- |6 U& Q* u! d2 i$ B* N; Gthe virtual disappearance of family farming in the U.S. And it isn't clear that the factory
9 r( W6 _- l K3 p5 ^farms always improve farming practices, in the case of the tomato, the old homegrown
$ @# r& X. d( n* \1 gkind are far superior in taste and texture to the tough, underripe version that has been 1 U; Z5 s7 K4 V5 k
genetically engineered for machine picking in huge quantity.
7 h J5 d, i. c8 h# R& n3 }3 l In conclusion, competition frequently motivates changes that are beneficial in
' K$ f k$ k% g* R# g& Rmany ways. But competition is a double-edged sword that can also result in-inferior or
! H+ e/ P; ?5 E6 N: j: S. Dunsafe products and dangerous working conditions for employees. Moreover, large 0 b: H9 X- h; a; r8 ?% ~
competitors can swallow up smaller concerns without yielding noticeably better
4 @0 }: O# o! }0 E; Jproducts or practices. |