Competition arises when two or more businesses contend with one another to attract customers and gain an advantage. For example, McDonalds and Wendyâ€™s compete within the same industry (fast food) to attract customers. Although their product offerings are generally similar, both businesses compete on price, location, brand identity, customer loyalty and market space to maximize profit. Recently Wendy’s has attempted to gain a strategic advantage over McDonalds by advertising the “fresh never frozen” quality of their burgers, while McDonalds has launched a very popular mobile app in an attempt to attract new customers. Competition has forced both McDonalds and Wendy’s to improve and continually adapt their product offerings.
Answer the following:
1. Pick your own example of two competing businesses in a related industry. Provide an explanation of why they are considered competitors.
2. Do you feel that competition is a good or bad thing in the business environment? Using the two competitors you have chosen, provide specific examples of how competition has affected their products/offerings to support your opinion. What specific changes have they made to their product offerings due to competition?
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