“Competition in business is the contest or rivalry among companies selling similar products or

targeting the same target audience to get more sales, increase revenue, and gain more market
share as compared to others” (pahwa, 2022)Thus, this essay will briefly explain what the case
study is about and discuss the problems of competition, and its effect of the LG company and
why such companies should be vigilant about other competitor brands in the market.
To begin with, being able to compete in the business environment is challenging as some
businesses are able to get the good of competition where some tend to get the worst. Thus, there
are two problems of competition that could be identified from the case study. Firstly, decreasing
the prices of goods and services to stay competitive, in which the business decreases the profit
limitations for each sale as it leads to the downfall of the business. Secondly, more innovation, is
where the companies bring in new products every now and then to be able to compete in the
environment, as that can make the company bring in rash ideas that the customers might not be
interested in, where it “restricts a firm's ability to innovate, because lower prices and profit
suggest firms have fewer financial resources that can be allocated to innovation processes (Does
competition help the economy?, 2022)”.For instance, in the case study LG engineers came up
with different ideas and models of mobile phones as where the customers found it hard to adjust
to. “the problem, they said, was that users were finding it hard to handle devices with what then
seemed like a large 5in (12.7cm) display”.
Furthermore, In most business marketing strategies decreasing the prices of goods and services is
one good way of attracting more buyers to purchase products in short period of time, and making
sellers or companies gain more profit in very short time. On the other hand, this could lead to a
problem of buying where customers or people purchasing the goods and products will perceive
such products as low quality and will tend to buy expensive products believing that it is of more
quality than the cheaper ones. In the case study, the LG company was applying various
techniques to meet some of its customer’s needs which require new inventions by engineers in
order to allocate the best demands of consumers or buyers (Lovering, 2022). Although, this has
created good impacts on meeting customers’ demands, some of the customers rated this new
invention as being gimmick or tricky in terms of lure attraction and finds it hard to buy the
products as it is way more expensive than other companies. Another problem portrayed in the
case study is the lack of market segmentation to enable buyers to rate the company’s effective
way of marketing as superior. In selecting the right competitive advantages, it is best for the LG
company to be able to formalize its strategies which is of importance in the eyes of buyers,
should be distinctive, superior, communicable, pre-emptive, affordable and profitable not in
gimmick ways but in good marketing situations (Narayan, 2022).
Moving on, Competition is not a new thing in today’s society, especially when it comes to
businesses, organizations and companies. Referring back to the case study, we noticed how the
Brand LG was trying to come up with new ideas and solutions to further increase their
smartphones products over the years, so that they can make a name for themselves in the market.
However, we can also notice in the case study, LG has competitor brands like Samsung, Huawei
and other Chinese brands such as Vivo, Xiaomi & OnePlus who are also selling similar products
(Smartphones) in the market industry. So, with this kind of situation, it clearly illustrates how
companies are being very competitive. Therefore, discussed below are some reasons to why
companies should be alert about competitor brands.
First of all, companies should be alert about competitor brands because of the possible threats
that the other companies/businesses will pose to the market (The Global Marketing Environment,
2022). For instance, in the case study it mentioned an I quote “Chinese brands, including
Xiaomi, Vivo and OnePlus, are prospering with advanced models priced at levels LG simply
can't profitably compete with.” (Kelion, 2021) It also mentioned a comment by Ben Wood from
CCS Insight who commented an I quote “LG's decision to abandon mobile phones reflects the
unrelenting competitive pressure it has faced in recent years” (Kelion, 2021) This clearly shows
a fine example of an underlying threat of competitors who are competing in the marketing
industry and who are selling similar products but with new advanced smartphone ideas and
models. So, when it comes to being alert about competitor brands, we must make sure to always
be aware of the possible threats that the rival companies will pose.
Secondly, companies should be alert about competitor brands because of competitive marketing
strategies that competitors do (Chapter 3 - Analyzing the Marketing Environment, 2018). That is
by marketing the related and substitute products in the industry to provide customer value and
satisfaction to the customers. For example; in the case study, we read about how LG was once
the world's third-bestselling mobile brand but now they couldn’t even make it to the global
smartphones top 10 list (Kelion, 2021). This all comes down to how a company comes up with
competitive marketing strategies to take advantage of their targeted customers. Before, LG was
dominating in the smartphone arena but nowadays due to new competitors like Samsung,
Huawei and many more, LG is now way behind the list. Therefore, competitive marketing
strategy is very important so companies should be alert at all times.
To conclude, it can be said that competition is simply the fact of doing and growing business.
Without competition businesses would not be able to produce quality products to consumers and
would not be able to gauge their strengths and weaknesses. Competition is a must for every
growing business, it is therefore up for the business to be alert about competitor brands and be
able to provide customer satisfaction.
Bibliography

Chapter 3 - Analyzing the Marketing Environment. (2018). In G. A. Philip Kotler, Principles of

Marketing (p. 94). London: Pearson Education Limited.

Does competition help the economy? (2022, June 2). Retrieved September 23, 2022, from
https://allfamousfaqs.com/does-competition-help-the-economy/

Kelion, L. ( 2021, April 5). BBC News. Retrieved from Google:

https://www.bbc.com/news/technology-56638991

Lovering, C. (2022, 09 22). CHRON. Retrieved from https://smallbusiness.chron.com/pricing-

variables-

Narayan, J. (2022). Marketing:Creating Excitement and Value. Fiji: University of the South
Pacific.
pahwa, A. (2022, August 3). Business Competition: Definition, Types, Importance & Examples. Retrieved
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The Global Marketing Environment. (2022). In J. Narayan, MG206 Course Book - Marketing
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affect-business-30856.html.
 I. Declaration page:

A. We verify that this project is primarily or solely our own work. Where we
have used other sources, we have used them appropriately and provided
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We have also not cheated by adding numbers, alphabets, characters to show

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ID Surname First Name(s) Section Done Signature

S11203147 Narayan Ayush problems and
compiling and
conclusion
S11179627 Meerei Taramarawa Effects and intro
S11184733 Rajiv Prasad Intro and
conclusion points
S11187541 Vertina Mesepitu Why companies
should be alerted