Reading response to J. Tepper’s “American cooperations are winning their war on capitalism”

Jonathan Tepper’s insight into how big companies usually kill small companies was so interesting. It is indubitably clear of how hard it is to make a company grow big from scratch in an environment where people already trust the product of another company. The tendency of Google and other big companies of buying smaller companies out of business might sound like a really bad scenario but I personally feel like this is the best environment for a business setting. The companies that give in to be bought by Google are negatively affected by competition not because the competition is bad, but because they might be doing it wrong.

To shed light on this, I know a man who was looking to start a business in Johannesburg, South Africa. Unfortunately, this business had no breakthroughs due to the fact that there were a lot of big companies that pretty much owned the market. However, despite the fact that this business did not go as he had planned at first, and that some people discouraged and urged him to quit, this incident made him a better entrepreneur as he was eager to do better than the other companies by self improvement, and in turn his business came on the right track. He did not quit, that’s how you do in a competitive market.

A better example is Elon Musk. He is undoubtedly one of the sharpest entrepreneurs in the world. Having founded Tesla, an electric car company which is growing rapidly, it is still of no doubt that Tesla is still a very small company as compared to the other car manufacturing companies. But did Elon Musk sell Tesla to Toyota or some big company like that? No he did not. The competition in the market is setting the bar high for Elon Musk to reach, which motivates him to improve his Tesla cars as much as he can.

For this reason, I feel like, despite the fact that competition in the market is usually sour in the short run, it is sweet in the long run unless you are treating it wrong.


5 Comments

  1. Hey! Interesting reading response ! I personally agree with you – however only to an extend. While it is true that competition usually allows for the rapid development and betterment of new technologies etc., it can be detrimental to startup businesses. Often times the companies that can sell a good product for the cheapest amount of money are at the top of the market – the problem is that the way these products got so cheapo is often through exploitation and other unethical ways. Therefore, while competiton encourages rapid advancement it also “encourages” ways, often unethical, to lower prices of products.

    To your point on Elon Musk: Before he found Tesla, Musk already made millions of dollars from starting “PayPal” – one of the biggest money-transfer application in the world. Therefore, he was already a kind of big player before starting Space-X and Tesla.

    Nonetheless, good thoughts and I agree with your main idea – tho sometimes there are hidden cons that are easily missed.
    Greetings,
    BR

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  2. Hi! Thank you for sharing your thoughts on Teppers paper, I found your thoughts and opinions very interesting. You say that you believe a system where bigger companies buy up start up companies is good for a business environment. You back this belief up with some examples of the underdog being motivated to work harder by the threat of bigger businesses. I am wondering what your vision of the best business environment is? For me it is one that fosters the most innovation, and when smaller businesses are being bought and then not used this stifles innovation. I am also wondering what you think of some of the other arguments that we have read in class that point to competition not actually motivating people?
    Great post!

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  3. Hey
    Your response to J. Tepper’s article is very relative to my personal opinion on competition. I do belief that it is about time the world shift from regarding agriculture as backbone of economies to competition. Competition is intangible but a resource which when used with fairness can benefit societies in many ways. Competition ensures consumer’s well-being therefore should be encouraged. Nevertheless, I also think competition is detrimental to some extent. Big companies purchasing smaller and growing companies is not healthy and cannot be termed as competition, because through that act, they cancel out chance of small companies coming up with new products in the market. Monopoly is not a fair competition because it hinders creativity and innovation. I think it is bias and a little bit over-generalized to conclude that competition only brings out the best. Competition has shortcomings especially when it is negatively perceived. There are individuals who fall under the category of great entrepreneurs like Elon Musk and your friend from Johannesburg who react to competitive with excitement and embrace it. Through that, they become more productive and grow. But there is another group that cannot just compete because it drains them mentally. They react to it with anxiety and with fear of being beaten, therefore become less productive. Taking into consideration both positive and negative impacts of competition, I think there is more good that come with competition and United State, the world strongest economy is a good example to draw our conclusion on. It is through competition that it has realize its full potential. Competition is good in business but to some extent.

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  4. Hey, very interesting response, i really enjoyed it. i am just wondering, dont you think that bigger companies buying smaller ones is killing competition? you described the environment as ” an environment where people already trust the product of another company” but what if these smaller companies are capable of making better products that can be more beneficial to the customers? isn’t it unfair that they dont get to show the world what they are capable of?

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