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I firmly believe that there is a deep connection between competition and the prices prevailing in the markets at a specific time. My basic understanding of economics informs me that the costs will be determined by the interplay of various factors when there are multiple suppliers. A firm has to understand its competitor’s pricing to determine the acceptable value for its goods in a competitive market. However, low or more stable prices are a lot the only benefit of having competition in the industry. Competition comes with numerous other factors, including improved creativity and innovativeness. Since the products in such a market will be highly substitutable, the organization’s primary aim will be to stand out from the rest. Standing out from the rest would mean finding and leveraging a certain unique selling point. With every organization having a unique selling point, the products will be highly differentiated and of high quality.
I believe this strategy will be substantially successful because the principles of macroeconomic theories support it. It is backed by realities such as the connection between price and fluctuations in the level of competition. In my view, exclusivity may lead to situations where one organization is the crucial player in the market. With a single organization dominating an industry and sensitive as one supplying biomedical items, there is the probability of it overlooking the pricing structure. It sets unreasonably high prices for the lack of competition. Organizations compete for many factors, including costs. For this reason, I firmly believe that this strategy will be highly successful and that it will meet the interests of many stakeholders, especially those in need of these products.