8 Ways Competition Improves Your Life
2. Inexpensive Goods
Competition not only drives innovation, it drives prices down. Whether it be coffee, soda, pasta, or anything else, companies have to be constantly aware of what their competitor’s prices are. Why? They have to sell their product next to their competitor’s on store shelves. If Coke decided it was going to charge $15 for a twelve pack of soda, Pepsi would rejoice and consumers would overwhelming chose the least expensive option. This works not only with products on the same town, but with businesses competing for the same customers. Local restaurants, gas stations, and the like have to be mindful of their competition’s prices nearby. The internet has only increased this competition, allowing companies to even compete in areas where they don’t operate.
