Well the answer of this question differs from side to side like the person who is on the making side may find it as an advantage but the person on the buyer’s side may find it as a disadvantage. Having more number of producers gives more options for the buyer as well as many more benefits which are hidden from the regular customers. Imagine a situation in which you have high number of options and the other case when you have only one or two sellers so in which situation do you think you are getting benefitted? Of course in first because there you are not only getting high range of variety but in order to attract you towards their product every company will try their hard and because of which the prices offered by them will be most feasible whereas in the second case it is not so.When you have limited number of sellers or you can say producers they know it very well that you will buy their product in any circumstance so they do not have any tension to lose you because of which the prices applied by them can be very high and in this you cannot do anything either avoid using that item or buy them on the specified prices.
If we see from the other end that is from the producer’s side then having few sellers is absolutely an advantage because the fear of losing you does not exist and they only have to focus on their production and what is market’s scenario they have nothing to do with it. This makes those producers powerful as they hold the full charge of deciding the price and the quality of the product. In today’s date where the competition is neck-breaking every company is trying hard to give you best quality product in the most suitable price as per them not you and now think of the case when they have no competition and they are very-well aware of the importance of that product. In the second case they are free to regulate the supply and also the quality of the product delivered to you and no one will be answerable and the only side which will get benefitted is the maker’s side and the buyers will face problems.
Now you can see the benefits of having heavy competition because if this competition would not have been there then the companies that do everything to gain your attention would not have been doing anything to please you because that time you will be the one who will be in need unlike today where you have plenty number of options and you can easily switch to another if you do not feel like continuing with one. Now companies are in need of customers so they are trying to provide the best they can and that too at the best feasible price so that maximum number of people can buy.