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  • Category: Miscellaneous

    Competition in business is boon for customers and monopoly a bane

    When there is competition among businesses for providing goods or service to customers then this proves to be a heaven for the end customers. The consumer not only gets various alternatives but also most competitive prices. On the contrary, monopoly by a business takes away all choices of consumers and even poor service and overpricing in long run.

    As of now the telecom sector is somewhat witnessing the same. Within a span of 3 years Jio has outperformed and wiped out many old and new players from this sector. Examples are Aircel, Tata Docomo, etc. Even Vodafone is reeling under huge financial pressure and pending cases which is slowly killing it. Airtel or Bharti enterprises has also recently said that soon there will be only 2 players. Now what has been seen is that the consumers have benefited a lot from Jio but at the same time has given it such a huge edge over other competitors tht soon it may become monopolistic and then all the consumers will be left at its mercy. What seems really good will turn ugly if there is no competition.

    On the other hand online groceries shopping is witnessing intense competition. Amazon Pantry, Flipkart, Big Basket, Grofers were already in scene and soon Jio Mart entered and toppled every other player. Still the competition is there and is going to intensify more with entry of Tata Super App for groceries. The benefit here will be only to consumers.

    Now both these scenarios show a altogether different story one being of service sector and other being of products category but ultimately the consumer is the one who will at the benefit end as well as receiving end in case of competition and monopoly respectively.

    Should there be any regulation for fair play or not as it will be more than evident that the bigger fish will eventually end up eating smaller fishes and then come after consumers.
  • #708343
    Competition in business is always better, so that the customer will get good service and product at a good price. But this competition should be healthy. Some business houses decrease the rates too much so that the other small business people can't continue their business and die down. Once all other companies stopped their business the only player remaining will increase the prices. I have witnessed this trend in some areas. Many small companies suffered a lot. This is not good for the customer also.
    Yes, Jio has brought a revolution. Only Airtel is able to withstand that competition and to some extent Idea also doing good. But all others are not there now. We don't after sometime both these two companies come together and they may increase the prices. That may become a big problem. All are now habituated to use phones and they may not be able to stop it and they may have to pay more.
    The same thing may happen in other cases also. So healthy competition is always better.

    drrao
    always confident


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