Business Ethics and Corporate Governance, Second Edition

BENEFITS OF COMPETITION TO STAKEHOLDERS

Competition improves the conduct of managers, as they understand that in such markets only the fittest can survive. This, in turn, improves quality of products and reduces prices for consumers, and maintains or increases market share, and return on shareholders’ investment. Consumers in economies having hitherto restricted competition as in India are reaping these benefits. In a much freer market today they enjoy a wide variety of products and services to choose from, competitive prices, technically updated products and other consumer friendly policies such as easy and installment credit, longer warranties etc. These benefits of competition can be analysed from two aspects: (i) competition in the product ...