Advantages And Disadvantages Of Clover

938 Words4 Pages
In economics, competition is the rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix: price, product, distribution, and promotion. Many economists such as Adam Smith and Merriam-Webster have defined this concept and have found competition in business to be mainly positive. By analysing a South African company, Clover, you can see that competition does not only have advantages, but also disadvantages to Clover’s operation and growth aspects. The advantages of competition to Clover’s operation and growth aspects would be: • Lower supplier costs- Just as businesses compete for consumers to purchase their product the same goes for suppliers. By suppliers…show more content…
This would include improved machinery to produce dairy products, improved advertising to attract consumers, new dairy flavours to create a variety of products and so on. This will create a competitive advantage for Clover which in turn will increase profitability and production in the workplace. This can also improve working conditions for employees as production will be made easier and less labour intensive. Employees will have a chance to be creative and come out of their comfort zone which can motivate employees to improve performance. • Higher performance- Employees for Clover will be encouraged to increase and improve performance as to stay competitive. Incentives such as bonuses, increases and improved working conditions can be offered to employees to encourage them to work harder and improve competitiveness. By improving performance Clover will be able to produce more products and sell them at a competitive price to increase profitability and become South Africa’s best dairy

More about Advantages And Disadvantages Of Clover

Open Document