Competition between companies

Competition defines a type of relationship between the actors of economic life characterized by the freedom to contract, start, move and undertake. It gives free rein to human behavior that is widespread in a world of scarce resources: from simple emulation and sporting competition to acts of aggressive rivalry. It is even in this sense that it is very important to investigate unfair competition as some firms specializing in this field do.

Advantages of competition

The market is governed by supply and demand, for the consumer, the more offers, the more they will have choice to see the one that gives them the best in terms of quality and economy. This is why, according to the Liberals, a situation of economic competition is desirable, as potential customers can choose between the different products offered and accessories and have a greater choice of products at a better price. Second, competition favours the permanent adaptation between supply and demand because economic agents can use their reason. Competition is what forces people to act rationally. In addition, they are the source of fair prices and establishes the true relationships between the goods. Finally, it is a process of innovation.

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The disadvantages of competition

In everything there is the reverse side of the coin. In terms of competition, the disadvantages are really considerable. Indeed, the competition process, if not well regulated, many companies could be victims of it. Competition, favors, large companies at the expense of small ones. When two people start boxing when they are not in the same category, there will necessarily be someone who will be out of the ring. This is what happens at the corporate level. The other big problem with competition is the unfair competition that some companies are engaged in not only to win the employees of their competitors, but also espionage or even the misappropriation of customers. All these problems must be taken into account.

Framing the competition

Competition is a good thing when it benefits businesses and consumers alike. To do this, it must be made a framed process, where respect of laws and regulations will be the guarantee of standardization beneficial to all concerned.

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