What is market competition? What are its main forms?

Market competition is a basic feature of the market economy. In the market economy, enterprises from their own interests, in order to achieve better production and marketing conditions, to obtain more market resources and competition. Through competition, to achieve the survival of the fittest enterprises, and thus achieve the optimal allocation of factors of production.

Main forms:

I. Price competition:

1. The condition for price competition is the reduction of costs.

2, the main means of price competition is to reduce prices.

Second, non-price competition:

The use of non-price competition will inevitably lead to an increase in production and operating costs.

Expanded Information:

Competitive Strategies:

One, high-quality competitive strategies< /p>

High-quality competitive strategy refers to the enterprise to high-quality as a means of competition, that is, committed to establish a high-quality corporate image, and hope to compete in the competition with high quality to outperform competitors.

Second, the concentration of competitive advantage strategy

Concentration of competitive advantage strategy requires that enterprises are committed to a certain or a few consumer groups to provide services, and strive to achieve competitive advantage in the local market.

Three, differential advantage competitive strategy

Enterprises to show some aspects of the uniqueness of the main means of competition, hoping to have an advantageous position in comparison with the differences between competitors, the formation of differential advantage strategy.

Fourth, the concentration of competitive advantage strategy

Concentration of competitive advantage strategy requires enterprises to be committed to a certain or a few consumer groups to provide services, and strive to achieve competitive advantage in the local market.

The so-called concentration, that is, the enterprise does not face the overall market for all consumers to launch products and services, but specialize in providing services for a part of the consumer group (local market).

Baidu Encyclopedia - Market Competition