competition

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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 ?
Global Competitiveness Brands Top 10 from China demonstrates the strength of Chinese brands, helps Chinese enterprises to make innovative breakthroughs in the Internet Plus Age to harness the potentials of future marketing.
Aiming to support the UAE's competitiveness indicators, the new Authority will undertake a wide array of functions to achieve its goals.
The FCSA will also represent the nation at various international forums in the field of statistics and competitiveness.
The top performing group, which brings together EU Member States with high and improving competitiveness, includes the Netherlands, Germany, Denmark and Ireland.
The report found that Delhi emerged as the most competitive city-state on the Manufacturing Competitiveness Index.
Qatar had maintained its ranking (10) out of (60) countries in the Competitiveness Yearbook 2013 and 2012.
Professor Bris takes over from Professor Stephane Garelli, who had led the WCC since its creation in 1989 and who will remain at IMD as a professor of World Competitiveness.
The High Commissioner was of the opinion that the competitiveness of Pakistan lay in its agricultural sector and Canada was providing its expertise to Pakistan in this sector, so that the potential of this sector could be harnessed.
Professor Stephane Garelli, director of the IMD World Competitiveness Centre, said while the Eurozone remains stalled, the robust comeback of the US to the top of the competitiveness rankings, and better news from Japan, have revived the austerity debate.
Both the organizations have also agreed to jointly execute activities to develop initiatives for measuring Pakistan's competitiveness and improving its ranking; whereas, to create a hybrid pool of resources for knowledge sharing.
On-going government investment in infrastructure, education, knowledge industries as well as the reforms and improvements to the business environment are key pillars in the government's strategy for better future competitiveness.
Competitiveness is a complex concept that is widely debated by economists, managers, politicians, academicians, etc.