51. We ordinarily think, as the speaker does here, that the presence of competition is
% R3 [. J1 |8 q+ A. falways healthy for business because it sparks efficiency and innovation. While . ]' q+ n/ z t. C# A
competition is generally good for business in these respects, the speaker here ignores the
8 E; T; z1 s- ]" O1 w8 }1 O$ W8 mmany problems that can accrue from attempting to keep up with or beat a competitor, ; x: v( g% B/ g) b# u/ K
and that may be decidedly detrimental to a business.* s8 L. }+ O: b
Admittedly, competition among businesses can occasion all sorts of improved -
1 j0 _4 U) [; ^' W6 Y1 t+ v, Cpractices. The need for competitive product pricing can motivate effective micro-
9 T0 m+ Q* v% N' {: d1 xmanagement of production and marketing costs. Competition for market share can spark ; L: f, M9 ^1 ~7 x3 F; c
invention and innovation in product design that lead to the cutting edge of technology. N4 l+ s3 J+ m& l' t/ d) ^2 `
External competition is known to inspire team spirit within an organization, thereby
$ J: |, F1 M4 u- n7 B9 w+ n# W/ Xyielding greater productivity. And competition can challenge a company to streamline
/ b: D% Y% `) ~; Q; ?operations, thereby improving efficiency.
, A8 ~1 I( B5 |& T% {0 J. c But taken too far, attempting to keep up with or beat competitors brings about 6 a1 `7 p5 N9 S
detrimental results for a company. In some cases, companies compromise product
; f( d# ]! R: Yquality by switching to inferior, less expensive materials in order to keep prices : R, Q# w' w8 f+ U
competitive. Other times, plant managers ignore important employee-safety measures 7 h m5 ], E5 ~4 i
just to save money. And companies are even known to trade off consumer safety in the
4 @2 x% _3 ]4 Minterest of competition. Perhaps the paradigmatic case involved the Ford Pinto, where * D; ^* G% o' r% C1 `2 R& Y
Ford management rejected an inexpensive retrofit that would have saved hundreds of
. U0 u+ Y9 y1 V" I; T' {, Xlives in rear-end collisions, solely in order to shave a few dollars off the car's sticker
! B& s/ }; k* [price, thereby enhancing the car's competitiveness.
3 L K; X# b' F; M( u; i( e- } Competition can even bring about large-scale social change that some consider
# W- s( ]6 D0 n6 N, qundesirable. For instance, the emergence of large, efficient factory farms has resulted in & G0 C+ t3 T* T1 C# ]' M$ I
the virtual disappearance of family farming in the U.S. And it isn't clear that the factory
1 e |- k+ V- s" J/ ?& A' j4 kfarms always improve farming practices, in the case of the tomato, the old homegrown
2 y, R0 h3 i% s* M2 Skind are far superior in taste and texture to the tough, underripe version that has been * A) _7 y7 z! M' S% w
genetically engineered for machine picking in huge quantity.! c$ |7 P8 G- Q! H& e
In conclusion, competition frequently motivates changes that are beneficial in
. X# v+ i# c+ T& a+ R* H8 C- B. Gmany ways. But competition is a double-edged sword that can also result in-inferior or 1 b/ B' b2 @) c/ h' l2 A0 Z7 A9 K7 M
unsafe products and dangerous working conditions for employees. Moreover, large * b2 j$ |2 V- W; k# {
competitors can swallow up smaller concerns without yielding noticeably better 5 v9 n1 V% E$ d0 h
products or practices. |