Should companies be competitive

Yes competition should be there between companies.It will motivate them to try to gain an upper hand on each other which is always good for a healthy and competitive work environment.

Agree with Mr.Diptanjan.If there is no competition then how one can judge itself as how good they are.Competition gives birth to innovation and having competitiveness among companies is always a good thing for customers who will be getting many options in terms of choosing a product as companies will be vying for consumer's attention...Moreover healthy competition will always bring the best out of a company.

It is the result of competition that today we can talk for hours through mobile phone and even BSNL tariff is also came down. it is also a result of competition, that i'm surfing net and writing all this at home.

It is the competition that today we can get computers and laptops cheaper then 05 years before.

We face competition through out our life. During school admission, then during engineering enterance, then for PG qualification. Then for getting a job. then why not the companies should do the same?

In my opinion, competition is very essential to deliver the best and at affordable price, keep creativity alive within the company and keep on improving at required areas. And above all, it will help to reach the development beyond metros and infrastructure development will take place to small cities as well.

I think this is well defined in economics. I have to avoid the mathematics here since it is not in proper order. We have to start from a utility function of an agent and aggregate it. Mathematicians call this function monotonic. We call this the SWF or social welfare function, which has some constant multipliers calle the Lmdas which are also called Lagrangian multipliers.

What they do is they give the gradient of the terms of the monotonic. So this lambda is taken to be the equilibrium social welfare constant meaning the smaller it is for those with higher wealth. This is inverted to get the equilibrium sharing of aggregate risk for the economic agents that is you and me under commpetitive environment meaning if one don't take more risk one cannot make more endowments possible for oneselves. That is rich people share higher aggregate risk than poorer people.

If one translates this into Firms using the Profit fuction we get a similar theory for profit maximising firms it is mandated to be competitive. The profit function is similar to swf and is monotonic.

The mathematics I avoid for sanctity here of the forum.

So companies need to be competitive to achieve their objectives of value maximization.

Competition always helps to bing the best out of one. A general rule is "servival of the fittest", if there is no Competition, there is no growth. By competition only company will try to create a better product and thus from consumer point of view they wil have proper "value for money".

If competition is not nurtured in the environment, then we breed monopolies. Competition makes the mission more efficient and thus help in meeting the goal of serving the customers and satisfying them which is the prime goal of manufacturing and services. Competition thus allocates resources efficiently not allocating to those who do a sloppy job when coming to their mission.

yes i am in suport of this and i feel nitin has define every thing in one line and that is very true...

Yes, of course if we are talking about those companies operating under the market economy. However, there is no need for the companies to be competitive if they are operating under communist regimes.

I definitely agree with ramprasad that there should be a healthy competition between the companies because only if there is competition,people can be assured of the best quality, reasonable price and efficient after sales service. moreover as ramprasad said there should be a governing body which is controlling the market behaviuour of every company to ensure the best service to the people.

Unless and until we have competition, we do not get the best. This should be the underlying factor even for the companies and their products. While competition is good , they need to ensure the quality, the after sales and more important there should be enough transparency. Along with this, I sincerely feel there has to some impartial regulatory body who would be watching this product game and also ensure that the compnay along with the consumer end up at positive sides.

COMPETITION -->

SURVIVAL + GROWTH

Healthy competition will bring out creative products from companies. With competition, companies will be able know areas where they have to improve and catch market.

Competition is welcomed by almost all the companies as it helps to stimulate the category.