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In the case of Lieber light vs. Vancouver Light, Lieber had an advantage in the Seattle area as being one of few providers of skylights. This meant that they controlled the market, were able to charge higher prices, and were able to attract customers easily. When Vancouver Light moved into the market, the company had some serious issues to think about. Should we lower prices? Cut Costs? Do nothing and hope customers remain loyal?
I believe that competition controls companies and forces them to offer the consumer the best possible product for a competitive price. There are many companies out there that have been considered having a “monopoly” : Google, Microsoft, and even Rogers Communications to name a few.
Picking Microsoft from the list, the company has had many issues with worldwide governments criticizing its current monopoly like situation. On the other hand though, Apple, once at the ground compared to Microsoft, has bounced back, and now is gaining market share. Many people did not like Microsoft’s product, “Windows Vista” and switched to Apple’s Mac osX system. This forced Microsoft to redevelop a higher quality, cheaper product that could draw people from Apple’s rising market. Competition acts as a control!
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