By this time you are pretty close to China, I should think. But thanks for the entertainment......
In a situation where there is a healthy pool of rivals, and motivation to increase market share, businesses will always be motivated to decrease costs and/or improve their product or service, in order to increase profits. If they are shielded from competition by isolation or protective legislation, then they may not improve productivity as much as available techniques would permit. Most businesses are subject to adequate competitive pressure such that if they did not succeed, at least, in following the leader, they would not survive. For example, one bank starts ATMs, and several years later, all offer the service, and it is fine- tuned as well. Similarly, one airline offers a comprehensive web site through which one can book tickets and travel packages, and pretty soon they all do, again, with ongoing tweaks. One restaurant starts "early bird specials" and all of its competitors make a similar offer, within the year. Walmarts begin to dot the countryside, and pretty soon, offering a wide selection of merchandise at a low price, they drive "boutique" competitors at the center of small towns out of business. Japan begins to flood the United States with high quality, relatively inexpensive automobiles, and forces a crisis on Detroit, which has to make cuts and design changes and retool. This is Economics 101......... |
