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Business Competition
Question: A great deal of the discussion about competition and assessing a country was driven by a Western perspective, and even more so by the US perspective. Not everyone in the world sees competition the same way. How do you think the nature of competition in business will change as more and more people are exposed to different cultures?
I think competition in a free market economy has always been and will always be about satisfying the customer. Ultimately companies are in business to make money and the customer is the vehicle where the money comes from. Therefore businesses will always strive to offer better customer service, better solutions, and better pricing. By doing this they are able to differentiate themselves from the competition and be the market leader for their given product or service. The fact that more people are exposed to different cultures benefits businesses that choose to have an international business model. In a world of globalization and technological advancements it's easier to sell products internationally and having an insight into different cultures and societies helps businesses is successful.
One dynamic that is affecting this is the ever-increasing role of government in the free market economy. As government grows and takes the place of free market businesses the dynamic of competition is changed forever. The main reason is that governments aren't worried about profits or efficiencies. Governments are worried about how they can increase their size, their budget, and their influence over the free market economy.Since government is a part of American and world culture there will always be the government influence on competition. This will be constant from country to country and continent to continent. There are however differences in societies and governments around the world. China for example is a communist society and a communist government. The influence of the Chinese government on competition drastically changed the Chinese economy and its place in the global economy. China's government propped up its manufacturing base and pegged its currency value in order to be more competitive against foreign businesses. They helped their local economies and created an unfair advantage for their businesses in the global marketplace.When you look at the Western influence on business and competition you will see positive effects of our free market economy in every corner of the globe. Even in China you see our competitive influences showing up in their approach to business. For example the Chinese government is allowing its currency to be valued and fluctuate with its imports and exports. This fact alone creates a more even playing field for all nations to compete with Chinese goods and services.
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