Sunday, June 26, 2011
Competition
Competition is a healthy part of economics. It causes the goods that are less desirable to go away or die down and the popular (not necessarily better) ones to stay around. My biggest example of competition is the one in the portable mp3 player market. The iPod is clearly the king but i remember the first mp3 player i had was a dell jukebox thing. It wasn't bad, it was durable, had good sound, held a lot of music, and was smaller than the smallest iPod at the time. But the iPod was so darn cool that i eventually got one and i have not seen a commercial or advertisement anywhere for any dell mp3 players. Now it seems like the iPod has a monopoly on the mp3 market. Not a complete monopoly because other companies do sell them but i have only met a handful of people without a iPod ( my dad even has one). But they seem to be the better ones and have been pushing out all of their competition so far as to have closed them or limited their sales.
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I like the fact that the our market system includes competition. When their are many producers or sellers of a product the supply goes up, when supply increases prices go down. When prices go down consumers will buy more of that product. Consumers are an essential part of the market system. If they spend the money the businesses get the money...therefore circulating income throught the market..aiding the economy.
ReplyDeleteI think competition is what has made things better in this market. It is what keeps the money going around and how things are upgraded to become better than the last competitor. Competition is what motivates the brain to come up with ideas to blow his competitor out of the water and get more sales.
ReplyDeleteMP# players and the Apple system are a great example of a product not being superior in any way, but being marketed to seem superior and more in then anything else.
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