What is the competition and its species

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What is the competition?Translated from Latin, means "encounter", "competition".In economics, the term has a place to be, and is defined as a fundamental element.Competition is not a concept that is used exclusively for the business environment and entrepreneurship, in the wild - a form of existence of the object, the right to be the best, to stand out from others.That thesis is subject to virtually all life on earth.

If we talk about business, the competition is meant by the rivalry, the competition of market participants for the right to obtain a buyer for the possibility of the sale of products on favorable terms, the expansion of the customer base and obtain greater profits.

competition can arise in a particular environment that does not allow the development of competition.If we take into account the wildlife, the participants are fighting for items such as food, water, air and so on.To draw an analogy between all living and business, then there is absolutely no difference, except that different objects for which there is competition.

What is the competition and who are the competitors?The last - it subjects the direct participants in the competition for the right to be the first.The fight takes place in an environment that has a definite benefit for him, in fact, they are struggling.It is good in limited quantities and each Party shall endeavor to seize the maximum part of it.

No wonder leading marketers draw an analogy between the types of competition in nature and in business.There are many examples of the diversity of its forms.On this basis define the types of competitors, which are linked to living beings for ease of remembering:

  • Mantis or karakurt.This type has a fierce rivals on Wednesday of existence in which everyone seeks to destroy your opponent.The female praying mantis eat the male, even after intercourse.In the business world it leads to arson, bombings, murders.
  • Beetles.The struggle of the competitors for a particular product does not entail the loss of health and damage to property.People use different methods: aggressive advertising, sales promotion, dumping and others.
  • Butterflies are more loyal and assume the goal by improving the attractiveness of their products - elegant packaging, advertising, and other relevant.
  • ants or bees.They are somewhat different light imagine what competition is.They tend to form groups or communities, between which runs the competition.

addition to the above, there are kinds of competition in the market - perfect and imperfect.In the first case, all the subjects of the medium are not able to influence the market conditions of its proposed price for the product or service.In the second case, there are circumstances that limit the struggle, as in Monopoly.

What is competition, whether it should be on the market?Of course - yes, because by it the consumer has quality products, and thanks to this contest formed the whole pricing.