Competitiveness. Briefly about the concept and forms

The essence of market relations is expressed by the concept"competition". It is a type of relationship between producers, which determines the prices and volumes of offers in the market of goods and services. On the other hand, there is competition between consumers, and it is this that forms market prices and volumes of demand. The desire of a person 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.

Competitiveness of an organization is determinedmeans 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.

Competitiveness of the entrepreneur ormanufacturer 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 are regulation, motivation, distribution and control.

The term "competitiveness" is not appliedonly with respect to a separate product or service, but also in relation to an industry or enterprise. Competitiveness is the subject of study of specialists in the field of management, marketing, micro and macroeconomics, as well as commodity science.

The basic notion of competition in a marketeconomy was and remains the competitiveness of products (goods), which is a relative characteristic, reflecting the fundamental difference between a product (product, service) and the product of a competing organization and reflecting the degree 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 related costs when using it or consuming it.

Conditional competition is divided intoconscientious 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 of the traditional forms of competition is "warprices "- can be carried out by lowering prices, seasonal sales, local changes in pricing policy, an increase in the period of consumer credit, the provision of an expanded range of services without increasing the prices for them. This type of competition is designed to push out uncompetitive, weaker rivals from the market, as well as to penetrate the market for goods and services.

But the most effective form of competitivestruggle 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 retaliate from competitors, since the issue of a new product is associated with a long-term program that includes the accumulation of scientific, technical and economic information, development and production.