Several countries have similar goods and stores. This helps in creating healthy competition in the market; however, I argue that too many similar shops result in market saturation which can negatively affect the industry.
Rise in same products and stores leads to vital competition in the industry. In addition, this ensures that no market has a monopoly, meaning only one or two companies are part of the industry. Having healthy competition ensures that the prices of goods and commodities are fair and competitive. Furthermore, competition between rival companies results into faster innovation. For example, the smartphone industry in its early years consisted mainly of two companies Apple and Samsung this resulted in a monopoly. However, in recent times more companies have been launched resulting in advancements such as foldable screens, wireless charging, and retractable front cameras. In my opinion, these benefits are not found in most markets such as fast food chains and supermarket stores.
Although, a large number of companies involved in one industry may be seen as beneficial this can lead to market saturation. This phenomena occurs when the supply from the industry is far greater than the demand from customers. A huge supply of goods results in losses due to the product being shelved or sold at break-even prices. Nevertheless, this may seem as beneficial for the customers it results in a financially broken industry with lack of innovation. Advancement in technology is critical for the industry in order to remain stable. For instance, at one point during its highest point Subway opened so many franchises that it was famously known for having an outlet within a mile. Hence, this resulted in a higher supply as compared to demand from customers causing huge losses to be suffered by the franchises. I believe that having the similar stores or franchises is detrimental for the market as it leads to huge losses and lack of advancements in technology due to market saturation.
In conclusion, having more competition in the market leads to fair prices and newer technologies. I think that the opposite is true because of market saturation causing companies to loose their inventments and create no advancements in the industry.