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The main benefit of a free enterprise system is that all citizens are free to start almost any business they choose and to run it as they see fit (this only applies to legal businesses, of course). Additionally, consumers have a choice between products, manufacturers, and the businesses that sell goods and services. For this reason, competition can get completely out of control within the free enterprise system. When a company introduces a product that becomes popular with consumers, they can expect other companies to create and market the same product and undermine the original manufacturer through competitive marketing and pricing strategies. In spite of this rabid competition, it is possible to preserve the competitive forces.
The first method of maintaining stable competition is to avoid undermining the other manufacturers by outsourcing to another country.
This leads to fewer jobs for Americans and the inability to compete along the lines of pricing. Next, companies should maintain the original quality of the product rather than resorting to less expensive materials and shoddy manufacturing in order to cut costs.
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Once an inferior product has been introduced into the market, the integrity of all of the products will be questionable.
One of the most effective methods of competition is the active and creative use of marketing, especially advertising. A good advertising campaign can put a particular brand in the minds of consumers while giving them a product mascot or theme to make it easier to remember the product and its manufacturer. It is unnecessary to resort to spreading negative information about a competitor; it is just as effective to produce a marketing campaign that will associate a particular brand with a particular product.
This method, referred to as “branding”, is a positive method to maintain the competitive spirit without undermining the competition.
Preserving Competitive Harmony in Free Enterprise. (2020, Jun 02). Retrieved from https://studymoose.com/free-enterprise-system-new-essay
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