GMAT Essays : GMAT AWA / AWM Issue
Points AGAINST Essay Topic 3 :

Issue Topic 3. Competition is invariably advantageous to a business because it compels changes to improve established methods.

Discuss whether you agree or disagree (partially or totally) with the view expressed providing reasons and examples.

Points AGAINST (not in favour of) topic:

AGAINST Point 3.1. Unfettered competition is not necessarily optimal.

AGAINST Point 3.2. If competition is too severe, it leads to unhealthy practices such as accounting frauds, false claims in advertisements, etc.

Example 3.2. The corporate accounting scandals in the U.S. are a good example of unethical practices caused by severe competition.

AGAINST Point 3.3. In an acutely competitive sector of the economy, there is sometimes no place for smaller players. They are often swallowed up by bigger entities playing in that space -- No room for small creative companies.

AGAINST Point 3.4. Owing to severe competition, companies sometimes neglect their social responsibility. Although there have been improvements in this regard recently, corporates need to pay more attention to issues such as environmental protection, public health and safety, etc.

Example 3.4. To cut costs or stay ahead of competition, companies often flout pollution norms and place the public at risk.

AGAINST Point 3.5. Companies become less sensitive to their employees' needs since profit is the sole driving force. This leads to insecurity among the workforce and hence lower efficiency. Employees face intense pressure to meet deadlines and deliver results.

AGAINST Point 3.6. To get ahead, companies are sometimes willing to take huge risks. While these risks pay off handsomely in some cases, they have disastrous consequences in others. The threshold of risk that companies are willing to bear is on the rise, and this is mainly due to cut-throat competition.