Competition in Business

COMPETITION IN BUSINESS
In today’s fast paced and interconnected world, businesses face the
dual challenge of competing effectively in both local and global
markets. The dynamic world of technology, consumer preferences and
regulatory environments demands a deep understanding of the factors
that shape competition and a strategic approach to capitalizing on
emerging opportunities. Through this presentation, we will explore
some key factors for success in today’s competitive landscape.
Competition in business refers to the rivalry among companies or
organizations striving to gain a larger share of the market, customers,
and profits within a specific industry or sector.
COMPETING IN THE LOCAL MARKET AND GLOBAL MARKET
Competing in the local market involves understanding and addressing

the unique needs of customers within a specific geographic region or
community. For example, doing businesses within Malawi only.
Competing in the global market refers to the dynamic interaction
among businesses across national borders, rivaling for customers,
resources and market share. Companies must understand all the
diverse factors to succeed in this competition.
THE IMPORTANCE OF COMPETITION IN BOTH LOCAL AND
GLOBAL MARKET
Understanding the significance of competition in both local and global

markets is essential for businesses, policymakers and consumers alike.
By examining the importance of competition in both local and global
contexts, it will help to appreciate its role in shaping the business
landscape and its impact on the prosperity of communities, nations and
the world at large
Therefore this exploration will provide valuable insights into the
significance of competition in both local and global market.
1. AT LOCAL LEVEL
 Economic development: Local competition encourages businesses to

invest in their operations, create jobs and stimulate economic growth
within the community.
 Improved product and service quality: As businesses compete for
local customers, they are motivated to enhance their offerings, leading
to higher quality products and services tailored to local preferences.
 Increased consumer choice: Competition provides consumers with
more options, enabling them to make more informed purchasing
decisions that align with their needs and budgets.
1. AT LOCAL LEVEL
 Innovation and adaption: To stay competitive, businesses

must continuously innovate, improve processes, and adapt to
changing local market conditions, ultimately fostering a culture
of growth and development.
 Community focused solutions: Local businesses understand
the community’s needs and challenges, leading to tailored
solutions and a stronger sense of connection businesses and
residents.
 Supporting local infrastructure and services: Local
businesses contribute to local tax base, which funds
infrastructure improvements, public services and community
initiatives.
1. AT LOCAL LEVEL
 Entrepreneurship and collaborations: A competitive local

market fosters an environment that encourages
entrepreneurships, and mutually beneficial collaborations.
2. AT GLOBAL LEVEL
 Improved standards and regulations: Global competition often leads

to the adoption of higher standards for product quality, environment
protection, and labor practices, benefiting consumers and societies
worldwide.
 Efficient resource allocation: Competition encourages businesses to
seek out the most cost effective production locations and resources,
leading to more efficient use of global resources.
 Economic growth and development: Global competition drives
economic growth by encouraging businesses to expand into new
markets, increase trade and create jobs worldwide.
2. AT GLOBAL LEVEL
 Innovation and technology advancement: Companies strive to
develop new products, services and processes to stay ahead of their
global competitors, leading to technological breakthroughs and
increased efficiency.
 Increased customer choice: Global competition offers consumers a
wide range of products and services from different countries, enabling
them to choose based on quality, price, and unique features.
 Spurring entrepreneurship and business growth: A competitive
global market creates opportunities for new businesses to emerge and
existing ones grow, driving economic development worldwide.
 Cultural exchange and understanding: Companies operating
globally learn to adapt their products and marketing strategies to suit
different cultures, fostering greater cross cultural understanding and
cooperation.
THE NEED FOR GOING GLOBAL
Here are some reasons why companies should consider going global:
 Access to new markets and customers: Expanding into new markets allows
businesses to reach new customers, increase their sales and diversify their revenue
streams.
 Learning and adapting to new business practices: Expanding globally exposes
businesses to new business practices, ideas, and strategies that can help them
innovate and stay ahead of the competition .
 Attracting and retaining top talent: A global presence allows businesses to tap
into a diverse pool of talented professionals worldwide, contributing to a stronger
and more dynamic workforce.
 Encouraging innovation and creativity: Global competition drives businesses to
think outside the box, fostering a culture of innovation and continuous
improvement.
THE NEED FOR GOING GLOBAL
 Enhancing supply chain resilience: Having a global presence allows

businesses to develop more resilient supply chains by sourcing
materials and services from various regions and countries.
 Contributing to global economic growth and development: By
participating in the global economy, businesses can contribute to
economic growth, job creation and improved living standards
worldwide.
FACTORS TO CONSIDER WHEN COMPETING IN LOCAL AND
GLOBAL MARKET
When competing in local and global markets, businesses should consider several factors to
ensure success. Here are some key factors:
LOCAL MARKET COMPETITION

 Understanding local consumer behavior:
• Tailor products to local tastes and cultural norms and make sure to analyze local economic
conditions and consumer spending habits.
 Regulatory environment compliance:
• Ensure adherence to local laws and regulations, including taxation and labor laws.
 Distribution channels:
• Form alliances with local businesses for distribution and retail.
• Optimize local supply chain and logistics for efficiency and cost effectiveness.
 Market saturation and competition:
• Study local competitors, their strengths, weaknesses and market
position.
• Evaluate the level of market saturation and identify potential gaps.
 Marketing and branding:
• Develop marketing strategies that resonate with local audiences,
utilizing local media channels.
• Build brand loyalty through community engagement and local
customer service.
 GLOBAL MARKET COMPETITION
 International regulations
• Be aware of international trade laws, tariffs, and import or export
regulations.
 Market entry strategies
• Choose appropriate market entry strategies. For example, joint ventures e.t.c
 Global competition
• Conduct a global competitor analysis to identify major players and their
strategies.
• Come up with unique strengths or innovative capabilities to gain a
competitive edge.
 Economic factors
• Manage currency exchange risks and fluctuations.
• Consider the economic stability and growth of target markets.
 Technology and innovation
• Leverage technology for efficient operations and to gain a competitive edge.
• Invest in innovation to meet the diverse needs of global consumers.
 Global consumer insights
• Understand diverse cultural norms and values to avoid missteps
• Stay updated on global trends and consumer behaviors across different
regions.
 Logistics and supply chain management

• Develop a global supply chain to ensure product availability and cost
efficiency.
• Establish reliable international distribution networks.
CONCLUSION
• In conclusion, understanding the importance of competition in both

local and global market is crucial for businesses to thrive and succeed.
Businesses must embrace competition in local and global markets,
considering factors like, market research, regulatory environments,
technology and other factors.
• With strategic planning and adaptability, businesses can not only
navigate but also build a sustainable future for themselves and the
communities they serve.
REFERENCES
Porter, M. E., (2019). Towards a dynamic theory of strategy. Harvard

business review, 97(6), pp. 94-103.
Greve, H. R., (2020). Network advantage: How to unlock value from

your alliances and partnerships. Oakland: University of California
press.
GROUP G
1. NAOMI NGANGA
2. NOEL ZX NDHLOVU
3. OFWA WENELUPEMBE
4. PACHALO KAYUNI
5. PATIENCE LIKANDAWE
6. PATRICIA CINDERELLA CHIBWE
7. CHRISTINA

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COMPETITION IN BUSINESS

Competing in the local market involves understanding and addressing

Understanding the significance of competition in both local and global

 Economic development: Local competition encourages businesses to

 Innovation and adaption: To stay competitive, businesses

 Entrepreneurship and collaborations: A competitive local

 Improved standards and regulations: Global competition often leads

 Enhancing supply chain resilience: Having a global presence allows

LOCAL MARKET COMPETITION

 Logistics and supply chain management

• In conclusion, understanding the importance of competition in both

Porter, M. E., (2019). Towards a dynamic theory of strategy. Harvard

Greve, H. R., (2020). Network advantage: How to unlock value from

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