Rachel A.

Gaviola

BSTM3A

Situation

Mr. Timado establised his business that offers spas and massage services both home and on-site last
year. It is going well and gaining more than expected profits. As another year takes in, it also manages to
manifest well-know customer service delivery and maintains loyal customers. As it celebrated its 2nd
year, a venture with the same service opened just in front of his enterprise. With its promo and new
offers many customer patronized it, but most of his loyal customers stay with them.

Business competitors
 They offer the same services as Mr. Timado's enterprise, including the spa and massage services,
and they also offer some new promotions that Mr. Timado does not provide.
Type of competitors
 Direct competitors
Offer the same good or service to compete with the same market. As a result, Mr. Timado's
enterprise offered the same goods and service that they did.
Role of competition
 As kind of a result of competition, entrepreneurs may enter the market and establish new
businesses. It generates jobs and provides individuals with a diverse range of employers and
workplaces to choose from. In addition, competition reduces the need for government
interference in the context of market control. A thriving free market supports consumers and
culture while protecting individual rights.