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When Men's Wearhouse fired a salesperson who wasn't sharing walk-in customer traffic, and total clothing sales volume among all salespeople increased significantly, the company reduced destructive internal competition.
What is a destructive competition?
- Multiple producers being driven out of the market by competition.
- When there are numerous manufacturers of a good, prices are frequently driven down to the point that nobody makes a profit, which is when destructive competition takes place.
What do you mean by internal competition?
- The aforementioned components are the foundation of our concept of internal competition, which is senior management-sanctioned duplication or overlap of activity within the firm's boundaries in an effort to resolve market or technology uncertainties.
Is competition is constructive or destructive?
- However, competition can really be divided into two types: healthy competition and unhealthy competition.
- Two competitors may work better together or may just cause mutual stress, similar to waves crashing into one another to create a larger wave.
Learn more about destructive internal competition here:
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