Wich companies are the most impacted by competition and why ? How can they survive ?

PINSON Maëlys

02/10/2020

Exam practice

Question 2 : Wich companies are the most impacted by competition and why ? How cant hey survive ?

The competition is an essential element on the market for companies because she push all the companies to improve and develop différents products for meet the needs of the customers. But there are differents sectors who the competition is more impacted by the competition like the restauation, the retailing or the clothing. So we have to see why this differents companies are most impacted by the competition and how they survive.

First of all, I think that the companies of clothes, cosmetics, electronics and retailing are the most impacted by the competition because there have a lot of demand.

Indeed, this type of company are very present on the market because they have a lot of customers who wants differents products. The demand is very high so the companies have a lot of offer. The competition is harder in this type of market because there is a lot of customer and they want differents things. So, the companies have to meet the needs and develop and innovate differents type of product.

For example, in the clothing, there is very differents companies like ZARA, Mango and so many others. But, with the lot of demand, the clothing sector have to improve and make differents type of clothe for all the customers. With the evolution of the industry and the developpement of internet, a different way for buy clothes appeared with the online shop who makes the competition and competitors more present and more difficult because of the gain of time.

        So, we just see why this kind og companies are the most impacted so now, we have to see how can hey survive.

        In a second time, all of this companies can survive on innovate and develop more products.

Indeed, there is a lot of demand on the market so the companies have to respond to this demand. For that, they have to innovate, create and develop more and more products. For the companies like clothing, the customer change their taste all the time so the companies have to innovate or their competitors will take their customers.

For example, a company of cosmectis like Sephora have to create more and more make-up to follow the fashion or their competitors like Kikoo will take their clients.

        In conclusion, the companies of clothes, cosmectics, retailing and electronics are the most impacted by the competition because of the demand and they can survive by innovating or creating.

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