Competition (from an armour. concurrentia - to face) is competition between manufacturers (sellers) of the goods and generally - between any economic, market subjects; struggle for commodity markets of the goods for the purpose of reception of higher incomes, profits, other benefits. The competition represents the civilised, legalised form of struggle for existence and one of the most effective mechanisms of selection and regulation in market economy.
The modern economic dictionary
Two more thousand back the Roman orator Tsitseron in the treatise about methods of conducting business has described two dealers which competing in speed ran to a nearby city to open there a bench. That is already two thousand years ago such phenomenon as a competition has been described. However today a situation is not such as two thousand years ago. Today’s businessmen face much more rigid opposition of competitors.
Last two years methods of forming of competitive strategy were at all on lips. However, if to speak frankly, the competition at that time was not rigid. Why? Yes because in our market demand in some branches and segments even surpassed the offer. Yes, someone earned more, someone earned less, but the matter of life and death did not stand. Basically, sufficed all – and survived all.
However world financial crisis has introduced the corrective amendments in this situation. If before company crisis bought much and left money easier now the situation varies radically. And in the near future for many businessmen the question will stand an edge: to remain in the market or to deduce money from business and to go to plant hens.
In this article I wish to consider two basic questions. The first – why today it is heavy to maintain a competition, what principal causes of it. And the second question – what to do? How to build the business and how all the same to receive from crisis though any advantage?
Today you see that the goods and services become every day more and more similar against each other. Today to find in a product competitive difference is almost impossible. When in due time company. When company Ford has let out the first pickup on the market, it was competitive advantage because it was not at anybody. But today the technology is at such high level that even if someone something will think up, it in the shortest term is reproduced.
Nevertheless till now I should face sellers who sincerely consider (and try to prove to buyers) that their goods are unique that it not such, as everything that it unique. Yes, I agree, such products still exist in the world, but them very much, it is not enough. In the overwhelming majority the goods and services are identical.
Modern example which many well remember. When “Strim” has entered the market of Moscow with the offer of broadband access to the Internet on technology ADSL, it was the unique offer. And it was impossible to reproduce it because of exclusive access of “Strima” to MGTS telephone systems. But even so powerful administrative resource has not helped: competitors soon began to lay cable Internet networks, and uniqueness of “Strim” became its lack: clients should have city phone, to potter with modems.
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