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 ?
Besides the FTC, the Antitrust Division of the Department of Justice, and Frances Autorit de la Concurrence, the G7 competition authorities also include Italys Autorit Garante della Concorrenza e del Mercato, Germanys Bundeskartellamt, Canadas Competition Bureau, the United Kingdoms Competition and Markets Authority, the European Commissions Directorate General for Competition, and the Japan Fair Trade Commission.
"Evasion", a short fiction film (15mn) by Rim Nakhli, is selected in the school competition dedicated to the Lissignol / Geneva integrated reception class.
A student Gulnaz from Psychology Department stood first in the English speech competition, while Waleed Tariq from Law College and Mirza Bilal from Agriculture College secured second and third positions, respectively.
Greeting the guests, Pashayev briefly talked about the competition, stressing that the idea belongs to the Azerbaijani Ministry of Education and Azercosmos OJSC.
Ngamiland District recently held its Spelling Bee competitions to select winners to represent the district at the national competitions to be held in Tsabong in September.
VOLUNTEERS: It is becoming more and more difficult to find MTNA members willing to serve as competition officials due to the required time commitment.
In Dry Flower Arrangement competition, Fabiha Khan clinched first prize, Aisha Kanwal stood second while Maryum Masood got third prize.
"This is the third year of the contest, and competition agencies continue to showcase more innovative ways of engaging policy makers and the private sector," said Klaus Tilmes, Director of the World Bank Group Trade and Competitiveness Global Practice.
Another national cheer competition holding an event at the DCU Center is Louisville, Kentucky-based Coastal Cheer and Dance, which is holding the Big League Brawl on Jan.
He said: "I'm gutted that the Fit Factor competition is coming to an end but this is just the start of the weight loss for me.
Ends/MS/FS Muscat, Sep 23 (ONA) The Main Committee for Sultan Qaboos Competition for Crafts Excellence today held a meeting under the chair of Sheikha Aysha bint Khalfan al-Siyabiyah, Chairperson of the Public Authority for Craft Industries (PACI).
Now Aram Khachaturian International Competition is a member of an established and prestigious musical family, members of which are