essence of market relations is expressed in the concept of "competition".It is a type of relationship between manufacturers, which determines the price and volume of supply of goods and services.On the other hand, there is competition between users, and that it forms a market price and volume demand.The desire to outdo the other person is the main motive and incentive to compete.The competitiveness of the company defines its market share in the area, and competition is a dynamic process, stimulating the market to provide new and better quality goods and services.
competitiveness of the organization is determined by the means used in the competition, which can improve the organization's position in the market.These include: the price and quality of products, product range and service, terms of payment and delivery, as well as advertising and information.
Competitiveness entrepreneur or manufacturer determined efforts he is making to ensure that meet the consumer.Therefore, competition in the market economy is a determining factor in the price of ordering, as well as a strong incentive to the introduction of new inventions, technologies and ideas.In addition, it promotes the rational and efficient use of resources, provides a displacement of inefficient enterprises from manufacturing, provides safeguards to prevent monopolies dictate to consumers.
functions is to regulate competition, motivation, distribution and control.
term "competitiveness" is applied not only with respect to an individual product or service, but also to the industry or enterprise.Competitiveness is the subject of study of experts in the field of management, marketing, micro and macroeconomics, as well as merchandising.
basic notion of competition in a market economy has been and remains competitive products (goods), which is about the characteristics of reflecting a fundamental difference of products (goods and services) from the goods competing organization and reflects the degree of the cost of its production.The costs in this case is the price of consumption, which includes the costs of the buyer, as well as all related costs during use or consumption.
conditionally divided into fair competition and unfair competition.The main methods of good form it is: lower prices and higher quality goods and services, extensive use of advertising and service development service, the creation of new products using the achievements of scientific and technical progress.
One and traditional forms of competition - "price war" - can be carried out down the price, seasonal sales, a local change in the pricing policy, increasing the term of consumer loans granted to expand services without increasing prices.This kind of competition is designed to push the market uncompetitive, weaker rivals, as well as to penetrate the untapped market of goods and services.
But the most effective form of competition for markets to improve the quality of products and services offered on the market for goods.At the same time, on the market more high-quality products very difficult decision response from competitors, since product launch is associated with long-term program, including the accumulation of scientific, technical and economic information, development and production.
