Conversations with the readers about what technology is and what it may mean to them. Helping people who are not technically oriented to understand the technical world. Finally, an attempt to facilitate general communication.
Monday, November 19, 2018
Competition -- the good, bad, and the ugly
Competition exists in all aspects of our lives. Sometimes it is not obvious -- which apple looks the best to eat? Do I like the green shirt or the red one? What is my favorite subject in school? Choices involve competition even if the things among which one must choose are not actively competing against each other. In these cases, the choice is usually made by our subconscious acting from our personal histories.
Competition can be eliminated via monopolies -- either regulated or unregulated. An unregulated monopoly is the only source and it can disperse it's products in any way, and at any price, at any usable quality. A regulated monopoly provides the only source but there are outside agencies that determine the parameters of its ability to sell -- quality, price, availability.
Even if there are two or more sources for a product, competition can be avoided if the sources make agreements between themselves about conditions of each of their production and distribution. Splitting the market, agreeing on certain lower limits on price, active sharing of research, and so forth can give an appearance of competition while the reality is just that the market is shared to enable all sources to maximize their profits.
If a product is not wanted, there can be no competition. Of course, most new products start as an unwanted entity in a condition of unregulated monopoly. They now have to persuade people that they want or need the product. This establishes the market and the introducing source can take advantage of their situation to establish their association with the product. Once the market has been established, then competition will appear (unless squashed by the introducing, or largest, company -- suppressing competition legally or illegally).
Each source for a competing product (and the product can be merchandise, services, political candidates, locations, or any other item from which one must make a choice) wants to persuade the buyer that they have the "best" product. Advertising and marketing attempt to create a specific positive perception -- which may, or may not, be in agreement with measurable, and verifiable, qualities.
The grand prize for an advertising/marketing division is to establish a brand such that people will choose according to the brand and only minimally (or not at all) evaluate the qualities of the products. On the scales of evaluation, a positive brand image is a heavy weight on the side of choosing that sources products. This can be reasonable, as brands are established by satisfying people with products on a consistent basis. However, if the brand becomes the only criterion, there is no longer any need of any positive qualities. Eventually, a product that has only brand recognition and is a poor product will lose its brand reputation and effectively have to start over within the market.
During the phase of true competition (no brand loyalty, no monopolies, required by the consumers) between two or more sources, competition can achieve continuous improvement of the products. One source "wins" and the other examines the reasons and improves their product to the point where they start "winning" and then the OTHER source starts improving their product. Once again, this can apply to many different products -- social and business. So, during this phase, there may be a "lesser evil" or "less bad" but making a choice towards that direction still continuously improves the choices from all sources.
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