GMAT AWA: Issue
"The presence of a competitor is always beneficial to a company. Competition forces a company to change itself in ways that improve its practices."
Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations, or reading.
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Andrew's Writing:
The speaker claims that competition is always beneficial to a company by forcing a company to change and to improve. In the first glance, people are more likely to agree with this assertion. However, I disagree with this statement ! According to my observation, although the existence of compeititors does benefit most of the companies, it doesn't prove to be always beneficial to some.
Admittedly, competition provides the dynamic for progression for an enterprise. A company could lose its competiveness if it doesn't follow the trend. The competition also means varieties of choices for customers, and that does make the enterprise itself become better. From ICQ, the earliest instant messenger, that i used as to communicate with friends, to Yahoo and MSN messengers, and the latest that i used, Google Talk, the compeition from those system providers allows us to benefit from the more handy functions. Because those companies know their clients needs, they benefit from the improvement they make. The style, functions, and quality of commodities are all improved greatly because of the compeition in those industries.
However, the competition sometimes reduces the marginal profit of a company. By spending more time and energy to the development of a product, the cost increases largely. Some companies are thus forced to close because they are not competitive enough. The First insurance company was once a main insurance company in Taiwan. In 1980, the government opened the market and allowed foreign insurance companies to establish in Taiwan. This practice created a lot of competitors from abroad for the local insurance comapny. Afterward, the First Insurance Company surprised its policy holders and declare bankrupcy ! Protectionism may not be a perfect policy, but it does protect a company and also protect its customers.
All in all, I am not against the presence of a competitor because it does make many companies regain its energy in the market. However, the evidence proves that it does not fit into all situation and it is not always beneficial.
"The presence of a competitor is always beneficial to a company. Competition forces a company to change itself in ways that improve its practices."
Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations, or reading.
----------------------------------------------------------
Andrew's Writing:
The speaker claims that competition is always beneficial to a company by forcing a company to change and to improve. In the first glance, people are more likely to agree with this assertion. However, I disagree with this statement ! According to my observation, although the existence of compeititors does benefit most of the companies, it doesn't prove to be always beneficial to some.
Admittedly, competition provides the dynamic for progression for an enterprise. A company could lose its competiveness if it doesn't follow the trend. The competition also means varieties of choices for customers, and that does make the enterprise itself become better. From ICQ, the earliest instant messenger, that i used as to communicate with friends, to Yahoo and MSN messengers, and the latest that i used, Google Talk, the compeition from those system providers allows us to benefit from the more handy functions. Because those companies know their clients needs, they benefit from the improvement they make. The style, functions, and quality of commodities are all improved greatly because of the compeition in those industries.
However, the competition sometimes reduces the marginal profit of a company. By spending more time and energy to the development of a product, the cost increases largely. Some companies are thus forced to close because they are not competitive enough. The First insurance company was once a main insurance company in Taiwan. In 1980, the government opened the market and allowed foreign insurance companies to establish in Taiwan. This practice created a lot of competitors from abroad for the local insurance comapny. Afterward, the First Insurance Company surprised its policy holders and declare bankrupcy ! Protectionism may not be a perfect policy, but it does protect a company and also protect its customers.
All in all, I am not against the presence of a competitor because it does make many companies regain its energy in the market. However, the evidence proves that it does not fit into all situation and it is not always beneficial.
posted by Andrew at
1:43 AM
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