competition is an integral part of market relations and the relations between economic entities.It is a struggle for material manufacturers, raw material and sales market.Defeat in the competition is to win the consumer market and get the maximum profit from their activities.This fact is the economy is the mechanism that regulates the amount of production.Consider what the competition and its types.
presence of competition is forcing manufacturers of goods and services to improve the quality, productivity, and reduce production costs.The result is a drop in prices as a way to fight for the consumer.Manufacturers are forced to expand the range and quality of products.Competition and it covers all types of goods and services market.Ideally, the market there must be a lot of manufacturers who have equal conditions for the production and sale of its products.The result is perfect competition, where winning a high-quality goods with the lowest price.
But in fact, this kind of competition to compete with other species.On the market there and imperfect competition.This market is divided among several companies that have better access to content and consumers.Let's talk about what is imperfect competition and its species.
With imperfect competition, individual companies may affect the pricing.There are several types of it.
Monopoly - is one of the largest species of imperfect competition.This one company can control the production of a particular industry and, consequently, marketing.This is the only manufacturer in this market, and the competition does not have.This kind of competition is very rare.Basically, this happens with the assistance of the state.For example, output of the patented drug.In today's market there is intense competition and its species, so monopolists have to withstand the attack of other companies and over time they reach the goal.
Oligopoly - this is another kind of imperfect competition, which occurs much more frequently.The number of manufacturers much greater.It may be two or more companies.On the market there may be a large range of one or another type of product, but it will produce only a few companies.They are the managers and Privacy Policy.Competition in this case is also seen clearly.These companies are fighting each other for consumer goods or services.
Another view - monopolistic competition.In this market there are many manufacturers, but the choice of the consumer depends on the location of the goods or services.Each user chooses a convenient way to purchase.
Basically the market there is perfect competition.Market competition and its types are as follows.
functional competition means different ways of meeting the needs of consumers.
types of competition based on differences in the appearance of the same products from different manufacturers.Subject
competition is the struggle between similar products, based on quality.
Price competition is a result of cost reduction in order to attract buyers.
There illegal methods of competition.They are based on creating advertising that negatively characterizes the products of competitors.This includes fake products of other companies.
Competition and its types in varying degrees are present in the market.It is an engine for the development of market relations, improvement of production process quality and reduce the cost of goods and services.
