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Advantages & Disadvantages of Competition in Business


July 2, 2021


A weathered, empty podium in an empty stadium. First, second, and third place.

Whether it’s direct or indirect, competition is a fact of life for almost any business. Even pioneers who are the first in their field have to face the reality that it’s only a matter of time before competitors appear, such as start-ups or larger companies expanding their range. 

Although it may seem that competition in business leaves companies with a smaller slice of the proverbial pie and a smaller share of the target market, competition can also benefit both companies and customers. So, what are the benefits of competition? How do consumers benefit from competition among businesses? Keep reading to find out.

Competition in the $400+ Billion Home Improvement Industry

Home improvement spending has been growing at an annual rate of roughly 4% and is projected to reach $510 billion by 2024. The home improvement sector as a whole is larger than:

  • Full-service restaurants
  • Department stores
  • Health and drug care stores
  • Clothing and accessories stores

Being such a large market means that competition is fierce! Everyone wants a piece of the growing home industry pie. 

However, in the 40 years of Screenmobile, we have not faced a single national competitor who provides the same mobile window screen repair service. No one else offers mobile workshop screening nationwide. This gives Screenmobile a massive advantage in terms of marketing, brand recognition, and supply chain. While smaller local competition is present, or even chain home improvement stores offer some of the services or contract out work to smaller specialists, no one in the industry offers the product selection, mobile service, and scope to compete with Screenmobile’s franchise system. 

Our successful and innovative concept has stood the test of time, but we are ready for competition and want to embrace the benefits to our business and our clients while minimizing the disadvantages.

This post will outline both and highlight how competition makes owning a Screenmobile franchise a great entrepreneurial investment.

Advantages of Competition for Businesses

Although competition in business lessens your individual market share, it can also force you to become a better business. It can be easy to rest on your laurels when you’re the only option. But, they say, “competition breeds excellence.” One of the benefits of competition is the way it can encourage businesses to step up their game in order to stand out.

A typical example is a restaurant that gets clients mainly because it’s the most convenient choice. As a result, customers will support the business even if the food isn’t fantastic. But if another restaurant opens nearby, the first restaurant will have to compete for clients and will need to improve to survive. 

The same principle applies to all businesses and is advantageous to both companies and clients. But ultimately, this side of competition in business is most beneficial to companies as it motivates them to innovate and strive for higher standards. You never want clients settling for your business; you want them seeking you out.

Disadvantages for Businesses

While there are a few benefits of competition, most see it as an obstacle. Competition in business decreases an individual companies market share and shrinks the available customer base, especially if demand is limited. A competitive market can also force lower prices to stay competitive, decreasing profit margins for each sale or service. 

An extreme example is a Flooded Market. As goods become overproduced, inventories pile up. When the stock reaches unsustainable levels, too much capital is tied up in product just sitting in storage, resulting in insufficient funds for necessary spending like rent and payroll. If the inventory remains chronically overstocked, worker layoffs or hours reductions become unavoidable to keep payroll costs within the shrinking budget.

As noted earlier, the home improvement sector is in high demand, with shrinking inventories. And, Screenmobile occupies a specialized within that industry. Our specialization and nationwide service network put us in an enviable position where we have no national competitors within a high-demand sector. Suffice to say, Screenmobile franchisees will tell you, “They are very busy.”

Advantages of Competition for Customers

How do consumers benefit from competition among businesses? For clients, it’s good to have choices. The more competitors in a sector offering similar products or services, the more options prospective clients will get to choose from. The competition in a market pressures businesses to improve their offerings, and those improvements pass on to clients in the form of more specific, efficient, and high-quality options. And the most apparent benefits of competition to clients is lower prices and increased buying power.

Disadvantages for Customers

Clients must also deal with the disadvantages of competition. Because competition in business can be brutal on companies, it may harm companies clients regularly support. For example, if your favorite restaurant goes out of business because of too much competition, you’ll never get to eat there again. 

Having too many options can complicate purchasing decisions. Example: Toothpaste. Most people do not have much of a preference for features in a tube of toothpaste, but toothpaste has an entire store aisle filled with options. 

On the flip side, a market monopoly ultimately leads to fewer, lower-quality choices.

Screenmobile and the Home Improvement Industry

Competition in business is a fact of life for any industry and carries advantages and disadvantages for both sides of the transaction. While competition spurs innovation and generates more choices, too much competition can hurt smaller businesses. Ultimately, larger companies will shrink the options consumers have. 

However, the home improvement industry’s high demand opened up many opportunities for companies committed to high-quality, affordable service.

Screenmobile Franchises occupy a desirable space in the home improvement industry as the only mobile workshop screening company in America.

Contact us now and get started.


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  • Ranked #100 in 2023
    Top Home-Based & Mobile Franchises

  • Ranked #23 in 2023
    Top Franchises for Diversity, Equity, & Inclusion

  • Ranked #64 in 2023
    Top Franchises for Less Than $150,000

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  • Ranked #100 in 2023
    Top Home-Based & Mobile Franchises

  • Ranked #23 in 2023
    Top Franchises for Diversity, Equity, & Inclusion

  • Ranked #64 in 2023
    Top Franchises for Less Than $150,000

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