Terms and Concepts - Essay Example

Terms and Concepts Terms and Concepts Competition It comprises of the contention between various firms in the provision of services and goods that entail profit maximization. For better competition skills, firms have to employ unique and competent strategies. The article on competition gives tips on ways to improve the competency of firms in the telecommunications industry (The Editorial Board 2014). Increased competition has prevented new firms from joining the market. Mergers and acquisition have been used as competition strategies because they increase the capital base of the main firm and eliminate threats.

For example, AT&T has plans to purchase T Mobile. The competition strategies eliminate cases of competition in the market. Management strategies have also been used in the competitive markets in order to make profits. Globalization has also led to multinational companies branching out. As a result, the level of competition has risen due to advancements in technology and the rush for businesses to make profits.SpecializationIt is the division of labor in companies as a strategy to increase chances of making profits.

It includes the assembling of workers in the same field to ensure the growth of skills through repetition of the same expertise. The article about China’s expansion in the Middle East market has highlighted approaches that have been used in the competitive market (Williams 2014). China’s industrial and Commercial Bank has insisted on the division of labor in all its departments. The bank claims that specialization leads to proficiency in the offering of services to its customers. Division of labor has been embraced by many firms as a competition strategy to ensure endurance and maximization of profits.

ReferenceThe Editorial Board. (2014, May 14). The New York Times. Keeping the Wireless Business Competitive. Retrieved May 20, 2014, from http://www.nytimes.com/2014/05/15/opinion/keeping-the-wireless-business-competitive.html?action=click&module=Search®ion=searchResults&mabReward=relbias%3Ar&url=http%3A%2F%2Fquery.nytimes.com%2Fsearch%2Fsitesearch%2F%3Faction%3Dclick%26region%3DMastheadWilliams, A. (2014, May 18). Chinas biggest bank gets approval for Kuwait branch. Reuters. Retrieved May 19, 2014, from http://www.reuters.com/article/2014/05/18/kuwait-banking-china-idUSL6N0O40IK20140518