Surprisingly competition can have simultaneous advantages and detrimental effects on a company’s market opportunity.
On the one hand competition can cause an entire market to grow through market development. Market development is the expansion of sales caused by companies in an industry using marketing programs to make buyers aware of a product and to understand the benefits of using it.
This occurs when marketing by company’s in an industry because more people to be aware of a product and to understand what the people can do for them. As a result more people buy more of the product increasing total sales for the entire industry.
At the same competition limits market opportunity for individual companies. Sales flow to the firms in an industry according to how well each jockeys for competitive position in the market.
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