What is competition and its types

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

What is competition? Translated from Latin means "collision", "competition". In economics, this term has a place to be, and is defined as a fundamental element. Competition is not a concept used exclusively for the business and entrepreneurship environment, in wildlife it is a form of existence of an object, it is the right to be the best, to stand out from the background of others. Almost all life on earth is subject to such theses.

If we talk about business, then competition means rivalry, the competition of market participants for the right to get their buyer, for the opportunity to sell products on favorable terms, for expanding the consumer base and making more profit.

Competition can occur in a certain environment that does not allow competitors to develop. If we take into account wildlife, then the participants are fighting for objects such as food, water, air, and so on. If we draw an analogy between all life and business, then there are absolutely no differences, except for the objects for which there is competition.

What is competition and who are competitors? The latter are subjectsdirect participants in the competition for the right to be the first. The struggle takes place in an environment that has a certain good, for which, in fact, they are fighting. This good is limited in quantity, and each participant strives to take possession of the maximum part of it.

It is not for nothing that 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 ease of remembering:

• Mantis or karakurt. This type of rivals has a cruel environment of existence in which everyone seeks to destroy the opponent. Female praying mantises even eat males after intercourse. In the business world, this leads to arsons, explosions, murders.
• Beetles. The struggle of such competitors for a certain product does not entail loss of he alth and damage to property. People use other methods: aggressive advertising, sales promotion, dumping and more.
• Butterflies that are more loyal and expect to achieve a goal by improving the attractiveness of their products - fancy packaging, relevant advertising, etc.
• Ants or bees. They have a slightly different idea of what competition is. They tend to unite in groups or communities, between which rivalry takes place.

In addition to the above, there are types of competition in the market - perfect and imperfect. In the first case, all subjects of the environment are notare able to influence the market situation with their proposed price for 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, because due to it the consumer has quality products, and thanks to such a competition, the entire pricing policy is formed.