What is competition and its types?

What is competition? Translated from Latin means "collision", "competition". In economics, this term has its place, and is defined as a fundamental element. Competition is not a concept used solely for the environment of business and entrepreneurship, in living nature it is the form of existence of an object, it is the right to be the best, to stand out against the background of others. Almost all living things on earth are subject to such theses.

If we talk about business, then competition is understood as rivalry, competition of market participants for the right to receive their customers, for the opportunity to sell products on favorable terms, for expanding the consumer base and making more profit.

Competition can arise in a certain environment, which does not allow the development of competitors. If we take into account the nature of nature, then the participants are fighting for such objects as food, water, air and so on. If we draw an analogy between all living and business, then there is absolutely no difference, except that the objects for which rivalry is taking place differ.

What is competition and who are competitors? The latter are subjects, direct participants in the competition for the right to be the first. The struggle takes place in an environment that has a certain good, for it, in fact, they are fighting. This kindness is limited in quantity, and each participant seeks to take over the maximum part of it.

No wonder leading marketers draw an analogy between the types of competition in wildlife and in business. There are many examples of the diversity of its forms. Proceeding from this determine the types of competitors that are associated with living beings for the convenience of memorization:

• Praying mantises or Karakurts. This type of rivals has a brutal environment of existence, in which everyone seeks to destroy an opponent. Female mantis even eats males after copulation. In the business world, this leads to arson, explosions, and killings.
• Beetles. The struggle of such competitors for a certain product does not entail loss of health and property damage. People use other methods: aggressive advertising, sales promotion, dumping and more.
• Butterflies, which are more loyal and assume achievement of the goal by improving the attractiveness of their products - smart packaging, appropriate advertising and so on.
• Ants or bees. They somewhat differently imagine what competition is. They tend to unite in groups or communities, between which rivalry takes place.

In addition to the above, there are types of competition in the market - perfect and imperfect. In the first case, all subjects of the environment are not able to influence the market situation by their proposed price for a product or service. In the second case, there are circumstances that limit the struggle, as under monopoly.

What is competition, should it be present in the market? Of course - yes, because at the expense of it the consumer has quality products, and thanks to this competition the whole price policy is formed.