Inspired by the below post there are important arguments to made for competition improving both the quality and even quantity of businesses. I ghost wrote a piece a month or so back making the argument that clusters - or geographic concentrations of interconnected companies - can be an important stimulus for industry. First, a concentration of competitive companies concentrates ideas and innovation within particular places. Second, this concentration is as much about resource chains as people themselves, creating pools of highly skilled workers in close proximity. Finally, cooperation between companies within an industry can build 'brand capacity' - a scale of work that only associations of competitors can accomplish. The spin off benefits are also worth reflecting on - supply chains thrive around high level competition.
Today the New York Times quotes Ford's 33 page-plan, submitted to the Senate Banking Committee. It argues that Ford's survival is tightly tied to the industry generally. Quote:
Because our industry is an interdependent one, with broad overlap in supplier and dealer networks, the collapse of one or both of our domestic competitors would threaten Ford as well,” the company said in its plan. “It is in our own self-interest, as well as the nation’s, to seek support for the industry at a time of great peril to this important manufacturing sector of our economy.”Here
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