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 ?
PR manager Paddy Power, a director of the company, said: "Where we are in direct competition with another bookmaker, we already offer zero deductions in some shops.
Agencies have not exploited a gap in the market, but have actually created the market, and are as a result in direct competition with the NHS for the supply of nurses.
The Palmetto State's aggressive approach to attracting captives puts it in direct competition with Vermont and any other state that seeks to dominate the market.
The South African company will find itself in direct competition in Egypt with U.K.
The Microsoft.NET strategy will inevitably place it into more direct competition with the large server companies, Sun, Oracle and IBM.
It is priced comparably to DDS-4 and is in direct competition with it.
Program, which will air weekdays from 6 to 8 a.m., will be in direct competition with "Good Day N.Y.," which airs from 6 to 9 a.m.
Direct competition in education and organization between grass-roots movements and intellectual visions of an abstract new Spain also illuminate the continuing lack of real reform.
Its customers have been limited to Japanese automakers operating in Britain to avoid direct competition with the British partner, which supplies its own products to local companies, the sources said.
They launched Scotland's first agricultural street market yesterday - in direct competition with the big retailers.
They set up a dance shop in direct competition with Diaghilev and then hired the sharpest and brightest in the Parisian art community.
Milwaukee's private voucher program, Parents Advancing Values in Education, is in direct competition with a government-funded voucher program.

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