Business Studies – 3.1.2 Understanding market changes | e-Consult

Increased competition generally benefits consumers in several ways. Firstly, it often leads to lower prices. Businesses are incentivised to reduce their prices to attract customers from competitors. This price competition ultimately passes on to the consumer. Secondly, competition encourages improved quality of goods and services. Businesses strive to differentiate themselves by offering higher quality products, better customer service, and innovative features. This benefits consumers by providing them with more choices and a better overall experience. Thirdly, increased competition can lead to greater innovation. Businesses are constantly looking for new ways to improve their products and services to gain a competitive edge. This innovation benefits consumers by providing them with access to new and improved products and services. Finally, consumers have more choice. A competitive market offers a wider range of products and services to meet diverse needs and preferences.