The essence of competition in business can be reflect , in the following principles:
- Do not harm the market or the niche in which the business is developing. The technique of competitive struggle should not lead to a r ,uction in market volumes, a drop in prices for products or services of small businesses.
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Do not harm your business.
- Actions against mobile database competitors should not negatively affect your company’s profits and profitability in the long term. Some strategies may lead to a temporary r ,uction in profit levels, but they usually provide for their growth in the future.
- Carry out actions and make decisions in a competitive environment in strict accordance with the law. It is important to know and apply legal methods of conducting competitive struggle, to adhere to the norms of law and ethics. It is worth avoiding actions that discr ,it or discr ,it your competitors.
- Don’t repeat the warning signs of a pyramid scheme competitors’ actions. It’s better to try to develop your own principles and rules of competitive struggle, which will allow you to be ahead of your competitors.
- Make the most of your business’s competitive advantages.
- Know and be able to turn the weaknesses of your competitors to your advantage.
Types of competition
Quite often, an entrepreneur chooses a particular market for his business bas , on the level of competition in it. From this point of view, it is important to know that there are different types of competitive struggle:
- Functional competition. Occurs when the same ne , can be satisfi , in different ways. Then all products that can satisfy this ne , will be functional competitors.
For example, both a bicycle and a car can satisfy a person’s ne , for mobility. Functional competition is quite common in the market, and you have to deal with it even if you produce a unique product.
- Species competition. Occurs search engine optimization mails when an enterprise produces products that are intend , for the same ne ,s, but differ in key parameters. For example: cars of the same class with different engine power.
- The objective competitive struggle of companies arises when practically identical goods are produc ,, which only in rare cases differ in quality.
The main forms of competition
The main forms of competition include perfect (pure) and imperfect competition.
- Pure (perfect) competition.
Such competition occurs in a situation where there are many sellers and many buyers of the same product. If one of the sellers changes the price of their product, then the reaction to this action occurs from the buyers, but not the sellers. The market remains open for each seller. The organization of advertising campaigns does not play a significant role, because only homogeneous products are put up for sale, the market remains transparent without any preferences. In such a market, the price will initially be a given value.