Competitive Market In Kuwait example essay topic
359 words
Many competitive markets have been appeared in Middle East lately, and specially in Kuwait. The One which I will discuss is the Internet competitive market in Kuwait. Internet has been a great demand in all over the world. In 1992, The ministry of communication in Kuwait provided the internet service. Since there was no community attraction toward the internet, the price of the provided service was pretty high. Since this company was the only one produced a certain market's product, they had inflated the price to the absolute highest cost that people would still pay.
Because of that, there was an absolute need for competition. Competition lowers the price because of the competition for costumers. Moreover, the provided service by the only company didn't have the quality that worth its price, like the lines were always busy or even if you get connected to the network the connection speed wouldn't be higher than 2400 bps. Companies were rarely thinking of joining this market, because the number of people demanding this service was unstable, and depending just on the high educated class or the university. Over the last 6 years, the demand of the internet has greatly increased, and many competitive companies showed up to satisfy the consumer's demand. Many companies started to break the monopolization of this market, and the price has been dropped incredibly.
Thus, the demand of this market started to raise up again. This competition among companies also raises the quality of the products because if a company put little technology and capital into their output, consumers would not buy from them, rather they would buy from the competition. In my own opinion, the companies would receive better advantages if they made a special discount for students. That because most of the people using the internet in that country are students. In my conclusion, I would like to mention these words written by a student fro this class, "A market without competition would reduce customers' utility because although prices may be lower, they won't be receiving the best quality goods.".
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