‘CUT-THROAT hypothesis, this situation arises where there are too many sellers offering similar products and targeting same segment of customers. Hence, the only option for these companies is to eliminate others. it is fiercely competitive, It is used to characterize competition that has crossed ethical lines and could be destructive for the parties involved.’
This hypothesis is equally applicable in all spheres of life - business, personal growth and development, creativity etc.
What are the competitive measures you are using to boost profit as a business owner?- Are you taking unretractable steps in your business?
One important thing every business owner should have at the back of their mind is - DO NOT COMPROMISE INTEGRITY, no matter how difficult or how competitive it gets, never compromise integrity.
That being said, Do you know that the more the world evolves in trade, some countries are left behind and some other countries who have improved on innovation and production are highly focused on. In other words, as the world evolves, growth is inevitable - As a business owner, you have to create new avenues for growth, you have to be innovative and leave the traditional way of running your business. As an individual, you have to improve on your level of knowledge, expose yourself to new possibilities and push yourself further because racing to the Top is difficult but the race to the bottom is as simple as ABC.
As trade expands in the world, the poor countries who have been inefficient in the global market are left behind. So it is in the competitive market, so many startups and small scale businesses find it difficult to break even and constantly find themselves struggling and at a point they eventually give up or better still close down. Thereby trying different measures just to survive. Over the long term, cut-throat competition is unsustainable for all companies involved. It is also called ruinous or destructive competition.
Find effective measures to run your business without risking integrity and avoid cut-throat measures that may affect your business in the long run.