What is competition? Translated from the Latin language means "clash", "competition". In economics, this term has a place to be, and is defined as a fundamental element. Competition is not a concept that is used exclusively for the environment of business and entrepreneurship, in living nature it is a form of existence of an object, it is the right to be the best, to stand out from others. Almost all living things on earth are subject to such theses.
If we talk about business, then competition means rivalry, competition of market participants for the right to receive their customers, for the opportunity to sell products on favorable terms, for expanding the consumer base and making more profit.
Competition can arise in a certain environment, which does not allow the development of competitors. If you take into account wildlife, the participants are fighting for such objects as food, water, air and so on. If we draw an analogy between all living things and business, then there are absolutely no differences, except that the objects for which there is competition are different.
What is competition and who are competitors? The latter are subjects, direct participants in competitions for the right to be first. The struggle takes place in an environment that has a certain benefit, and for it, in fact, they are fighting. This good is limited in quantity, and each participant seeks to take possession of its maximum part.
No wonder leading marketers draw an analogy between the
types of competition in wildlife and in business. There are many examples of the diversity of its forms. Based on this, the types of competitors are determined, which are associated with living beings for the convenience of remembering:
- Mantis or karakurt. This type of rivals has a cruel environment of existence, in which everyone seeks to destroy the opponent. Mantis females even eat males after intercourse. In the business world, this leads to arson, explosions, and killings.
- Beetles. The struggle of such competitors for a certain product does not entail loss of health and damage to property. People use other methods: aggressive advertising, sales promotion, dumping and more.
- Butterflies that are more loyal and suggest achieving the goal by improving the attractiveness of their products - elegant packaging, appropriate advertising and more.
- Ants or bees. They imagine in a slightly different light what competition is. They tend to unite in groups or communities, between which the rivalry takes place.
In addition to the above, there are types of competition in the market - perfect and imperfect. In the first case, all environmental actors are not able to influence the market situation with their proposed price of a product or service. In the second case, there are circumstances that limit the struggle, as in a monopoly.
What is competition, should it be present in the market? Of course, yes, since due to it the consumer has high-quality products, and thanks to such a competition, the entire pricing policy is formed.