competition

(redirected from Direct competition)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

Competition

Intra- or intermarket rivalry between or among businesses trying to obtain a larger piece of the same market share.

Competition

The attempt by two or more companies or other organizations to secure the business of a customer. Competition occurs when different companies offer better quality products and/or lower prices in order to encourage economic actors to become and remain customers. For example, two grocery stores may advertise that they offer better quality meat or lower prices for peanut butter so shoppers patronize one grocery store and not the other. Nearly all economists believe that competition is necessary for innovation and growth, though few agree on how best to foster competition.

competition

the process of active rivalry between the sellers of a particular product as they seek to win and retain buyer demand for their offerings. Competition can take a number of forms including price cutting, ADVERTISING and SALES PROMOTION, quality variations, packaging and design, and market segmentation (see MARKETING MIX). The nature and intensity of competitive relationships in a market, in turn, depends on various factors such as product and buyer characteristics, the extent of market concentration, and cost and demand considerations (see MARKET STRUCTURE, MARKET CONDUCT). For example, where products are standardized, competition is usually focused on price, whereas in markets where buyers demand a wide range of product variety and quality mixes, PRODUCT DIFFERENTIATION competition tends to be emphasized. In markets characterized by high levels of seller concentration, suppliers tend wherever possible to substitute product differentiation competition for price competition because of the mutually ruinous consequences of price wars. Moreover, in some instances, mutual interest considerations may well lead suppliers to control competition so as to promote orderly and profitable trading conditions by, for example, establishing price fixing CARTELS. Business strategy and marketing analysts are especially concerned with identifying and exploiting product and buyer characteristics as a means of establishing COMPETITIVE ADVANTAGES over rival suppliers. From a wider public interest angle, the nature and strength of competition has an important effect on MARKET PERFORMANCE and hence is of particular relevance to the application of COMPETITION POLICIES.

competition

  1. 1a form of MARKET STRUCTURE in which the number of firms supplying the market is used to indicate the type of market it is, e.g. PERFECT COMPETITION (many small competitors), OLIGOPOLY (a few large competitors).
  2. a process whereby firms strive against each other to secure customers for their products, i.e. the active rivalry of firms for customers, using price variations, PRODUCT DIFFERENTIATION strategies, etc. From a wider public interest angle, the nature and strength of competition has an important effect on MARKET PERFORMANCE and hence is of particular relevance to the application of COMPETITION POLICY. See COMPETITION METHODS, MONOPOLISTIC COMPETITION, MONOPOLY.
References in periodicals archive ?
At the opposite end of the spectrum, Texaco was able to garner the largest price premium when compared to direct competition.
MannKind's product portfolio is also in direct competition with heavyweights like Pfizer.
Trading exchange will also be the battleground where segment leaders from procurement, sell-side, ERP, SCM and ERM will come into direct competition.
Koken suggested the group tackle life insurance products first, in part because they face the most direct competition from banks and securities firms.
Its low-cost flights from Stansted will be in direct competition with Virgin Express, easyJet and Debonair.
In the Japanese public-funded sector, Cray had previously installed eight baseline systems since 1979, none in direct competition with a Japanese vendor.
Alger notes that while the North American telecommunications giant is attempting to capture a portion of the long-distance market, it is not going to be in direct competition with Bell Canada.
This restaurant, which is located in a historic landmark building with excellent visibility and minimal direct competition, further strengthens our presence in California.
The collections, which offer higher margins and face no direct competition at other stores, have been bolstered by moving all design work back in-house and shying away from the polyester prints that made them previously unfashionable.
With the installation of Keno games and scratch tickets at the track, the state has recently gone into direct competition with the greyhound owners.

Full browser ?