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 ?
There might be many sources of competitive advantage of the firm.
But, for the most part, coaches report that the competitive element enhances learning in several ways.
Asked to explain Jaguar's competitive difficulties with the currency shift, a Ford spokesperson said, "Exchange is cyclical, and you can't really change a manufacturing footprint overnight on the basis of a single quarter or even a single year.
This idea of competitive and noncompetitive service separation was endorsed by the OECD in April 2001, and is currently being considered in the UK as a means to regulate British Telecom's market dominance of the local loop.
The second component of the marketing strategy, targeting, defines your competitive scope.
Greater appreciation of the importance of competitive intelligence also can have a positive effect on the attitudes of PR professionals toward CI, their willingness to change traditional methods of conducting communication programs, and their level of acceptance of this discipline if they have legitimate questions about CI.
Competitive information systems (CIS) help managers to stay abreast of market, competitive, and world events.
The best ways to gain valuable competitive information are to
For cases submitted to Board review, other factors are analyzed that would not need to be examined if the basic commercial bank concentration ratios imply competitive structures.
Thus a change in the rate of acceptance for a particular subgroup will have no mathematical impact on the rate of rehabilitation or the competitive employment rate for that subgroup.