Competitive Edge

Essentially, throughout the global economies, there are three main types of competition, and they are: technology advances, financial considerations, and market forces.

With respect to technology, processes and operations can be more enhanced and streamlined by advancements in automation thanks to new AI technology, skill development, and innovation. 

With that being said, these new technological advancements don’t come from thin air, they come through the means of financial investment. Companies or individuals that invest, expect something back in return, referred to as ROI (Return on Investment). When something is invested in, it is expected to return a greater amount of sales and a greater overall quality, thus returning a greater amount of money to the investor(s). Market competition occurs where companies in the same sector compete against each other in two ways. 

Inter-industry competition is the competition between businesses within the same industry, you may buy a Fox’s biscuit instead of a McVities biscuit.  
Intra-industry competition is the competition between companies in other sectors that compete for a share of your salary, you may buy a car instead of going on holiday.

If your quality, cost, and delivery all exceed expectations, then you’ll have your customers return to you; you wouldn’t only think about surviving between your competition, you’ll thrive.

Learning Objectives:
•Distinguish between the three main types of competition
•Compare and contrast how these types of competition have a direct effect on one another
•Illustrate how the three main types of competition effect a business