competition - it is a way of development of commodity production and the type of competition the economic elements of the consumer preferences of the audience in order to maximize profits.Translated "competition" means "face", and, as in today's society control the volume and rate of production, encourage producers to introduce scientific and technological achievements and improve productivity.
Competition development and evaluation of enterprise competitiveness was only possible under the conditions of the capitalist mode of farming.Capitalist relations in which were removed all restrictions on the direction and path of movement of labor, goods, capital and relationships in the national market and the emergence of the global market was only possible thanks to the emergence of competition.
optimal intensity of competition and evaluation of the competitiveness of products in the market suggests as a policy objective in this area the following points:
- rapid adoption of technological progress in the production of goods and services, so-called innovation policy under the pressure of competition;
- flexible adaptation and conversion of enterprises under the influence of the propensity of consumers.
Evaluation of competitiveness of the goods or services, and the scale of the intensity of the competition is determined by the speed of the loss of earnings benefits, that is, how quickly innovative production methods used by competitors.First and foremost, this figure depends on the efficiency and speed of competing companies and their reaction to the leap in quality and technology enterprises in the vanguard, as well as the dynamism of demand.
basic principle of competition states that the most favorable conditions for the development of healthy competition there, if the competition is represented by the "broad" oligopoly."Narrow" oligopoly, coupled with a strong individualization of goods or services, reduces the intensity of competition.
In any system of market economy, there is a danger of evasion of participants of competition from mandatory rules and risks are closely related to the conditions of free competition, and thus can not be made accurate assessment of a company's competitiveness.In order to avoid unfair competition practices (collusion on prices, the imitation of trademarks, etc.), the State shall issue rules governing the competition regulations.These regulations guarantee:
- quality products;
- the mere existence of competition;
- position of price and quality of goods or services the focus of competition;
- proportionality of the price of the service to other terms of the contract;
- the existence of trade marks that are protected by law and confirm the quality of products;
- time limit patent protection (20 years).
To evaluated the competitiveness of the enterprise or company, it is necessary that in the course of the competition in good faith used methods of competition, in addition to which, as we know, there are at least a law called unfair.
The methods of unfair competition is industrial espionage (also economic);bribery and blackmail;fake competitors' products;fraud reporting;consumer fraud;concealment of defects in the goods;etc.In addition to unfair methods of competition, in which the true assessment of competitiveness can not be done, it is the scientific and technical espionage.After all, as we know, can be a source of profit is the only development that will be realized in practice, that is, if the scientific and technical invention or idea will be implemented in the production of a specific product or a new technology.
