Competitiveness. Briefly about the concept and forms

The essence of market relations is expressed by the notion of "competition". It is a type of relationship between producers that determines the prices and volumes of offers on the market of goods and services. On the other hand, there is competition between consumers, and it forms market prices and volumes of demand. The desire of man to surpass others is the main driving motive and incentive in the competitive struggle. Competitiveness of the firm determines its share in the market, and competition is a dynamic process that stimulates the provision of the market with new and better products and services.

The competitiveness of an organization is determined by the means used in competition, which can improve the organization's position in the market. These include: the price and quality of products, product range and service, payment and delivery conditions, as well as advertising and information.

The competitiveness of an entrepreneur or producer is determined by the efforts that he makes to satisfy the consumer. Therefore, competition in a market economy is a determining factor in the ordering of prices, as well as a serious incentive to introduce new inventions, technologies, and ideas into production. In addition, it promotes the rational and efficient use of resources, ensures the displacement of inefficient enterprises from production, serves as a guarantor of preventing the dictatorship of monopolies in relation to consumers.

The functions of competition consist of regulation, motivation, distribution and control.

The term "competitiveness" applies not only to a particular product or service, but also to an industry or enterprise. Competitiveness is the subject of study of specialists in the field of management, marketing, micro and macroeconomics, and commodity science.

The basic concept of competition in a market economy has been and remains the competitiveness of products (goods), which is a relative characteristic that reflects the fundamental difference between a product (product, service) and the product of a competing organization and reflects the level of costs for its production. The costs in this case include the price of consumption, which includes the costs of the buyer, as well as all associated costs when using or consuming it.

Conventionally, competition is divided into conscientious and unfair competition. The main methods of its conscientious form are: reducing prices and improving the quality of goods and services, actively using advertising and developing service, creating new products using the achievements of scientific and technological progress.

One and traditional forms of competition - the "price war" - can be realized by lowering prices, seasonal sales, local price policy changes , increasing the consumer loan term, providing an extended range of services without increasing the prices for them. This kind of competition is designed to push out of the market uncompetitive, weaker rivals, as well as to penetrate the market of goods and services.

But the most effective form of competition for markets is to improve the quality of goods and services offered on the market of goods. At the same time, the appearance of higher-quality products on the market makes it very difficult to take response from competitors, since the release of a new product is associated with a long-term program that includes the accumulation of scientific, technical and economic information, development and production.