Wednesday, August 26, 2009
Competition in A Free Market
How can anyone doubt the value of open competition in a free market? The biggest example of this is the huge influence of foreign cars in the domestic US market. It was because of foreign competition that US auto manufacturers realized they better start making better vehicles or it's curtains for them. Another example is the emergence of alternatives to cable TV. Because of the entrance into the market of AT&T UVerse and Verizon, Charter cable has been coming out with some very worthy multiyear packages. My final example is the battle between Home Depot and Lowe's. Was a time before Lowe's came to town when you walked into Home Depot and if you didn't know exactly what you wanted or where it was, you were out of luck. Just try finding someone to help you. Add to that the poor quality of their building materials, i.e. warped and cracked lumber, stuff strewn all over, etc. Then Lowe's arrived. Home Depot was faced with either going out of business or improving. Recently I went to Lowe's for flooring tile. It took a while to get someone to help us but when we finally did, we placed an order that was supposed to be transferred from one of their warehouses to the location we were at. They promised to call me the next day. No call so I called them. The lady I talked to acted like I was speaking Swahili. She hadn't a clue what I was talking about. Sooo...off to Home Depot I went. There was a person standing at the door greeting me and directing me to where I needed to go. Once there, I placed the order to be picked up the next day at their loading platform. Guess what? It was there waiting for me. It was even loaded into my truck for me. So good bye and good riddance Lowe's and hello Home Depot. Good old competition!