BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Basic economic theory demonstrates that when firms have to compete for customers, it leads to lower prices, higher quality goods and services, greater variety, and more innovation.

Detailed explanation-2: -“Competition is a key driver of innovation. In open and competitive markets, firms are driven to adopt more efficient production processes, and to offer new and improved products and services to customers, ” said John Pecman, Commissioner of Competition at the Workshop on Emerging Competition Issues.

Detailed explanation-3: -The model describes how competition may increase the incremental profit from innovating. With stronger the competition, the risk of being matched by and overtaken competitors will be costlier for technically developed firms. Consequently, these firms will increase their R&D expenditure to outpace the competition.

Detailed explanation-4: -Innovation increases your chances to react to changes and discover new opportunities. It can also help foster competitive advantage as it allows you to build better products and services for your customers.