Competition can be defined as a test of rivalry. More often than not, it is associated with business. Business competition refers to the matchup between two firms looking to win sales, profit, and market share. It exists in every industry and, surprisingly, competition is good for a business venture. It is impossible not to find competitive rivalry.
As the contest increases, enterprises need to find new ways to set themselves apart from the crowd by delivering an extraordinary service or using signage. When it comes down to learning more about designing compelling signage, it is recommendable to visit Bordenmax. It may not be fun, yet competition is an unavoidable part of the business world. Some entrepreneurs wish they did not have competition. Unfortunately, they have not yet understood that they do not live in a perfect world.
Why Is It Important For European Companies To Have Competitors?
It is hard to believe that competition is advantageous for doing businesses. When there are so many companies in the industry, some vendors are driven from the business. Yes, but this does not always happen. Entrepreneurs can continue to dream about a market for themselves, but it will not do them any good. Competition represents a necessary evil that must be accepted.
Competition among companies can:
- Increased consumption: An increase in competitors is followed by a rise in consumption, which is a good thing. When there are competitive prices, people can afford to purchase more. It is easy for them to buy the things that they need and pay for them.
- Building a brand for business: Competitors can help consumers gain information about this is that business. If, for example, someone comes across a firm that is grouped in with competitors, they will be able to identify that business.
- Innovative thinking: Rivalry determines companies to think outside of the box as far as the development of the business is concerned. They can pinpoint their unique value proposition, seek out winning alliances, and take other measures to survive.
The fact of the matter is that competition is a great advantage to any organization. When there are similar businesses, there is a strong interest for a certain product or service. The existence of numerous competitors does not make it unattainable for enterprises to meet with success. It simply means that there is a strong demand and companies find themselves in a good position.
What to Know About Competition Laws in the EU
European competition law is aimed at promoting the perpetuation of rivalry within the European Single Market by controlling anti-competitive conduct. When someone acquires goods or services in the European Union, whether from a website or a local store, their rights are protected by the law. To be more precise, the law puts a stop to unfair commercial practices. By this, it is understood illegal agreements and contracts, price fixing, and, last but not least market sharing. The consumer is completely protected from unfair trading, so corporations have to make sure that they act in a responsible manner. In what follows, we are going to enlarge a little bit upon the competition rules that are being applied to companies.
Prohibited Agreements and Contracts
Some organizations will go at great lengths to limit the competition. They strike agreements and enter contracts that are ultimately harmful for consumers. The agreements and contracts are meant to block competition by including several restrictions. The restrictions can apply, for instance, to the amount or content of marketing. Why is this unfair? Because individuals are in the impossibility of making choices in the marketplace. It goes without saying that documents of concurrence of this type are not compatible with the rules.
Price Fixing
Price fixing is a primary concern for EU leaders. Undisclosed price fixing results in deflated product lines, not to mention narrow price ranges. Sometimes, producers, sellers, and even purchasers decide to set prices at a certain level, to their benefit, of course. This procedure is most commonly referred to as a cartel. Secret price fixing is regarded as a serious infringement and it is always condemned. Investigations and court proceedings in this area of law are complex to say the least. The reason for this is that it is required to carefully study business records dating back from a long time.
Abusing Market Power
The market share refers to the percentage of the industry that is gained by a corporation. High market share proves that a company has succeeded in offering consumers a product or service that meets their expectations. The thing is that some firms holding a dominant position use their power in an abusive way, affecting trade between Member States. If they do not charge unrealistic prices, then they enforce certain trading conditions.
Competing in Europe
The European market is a traditional one, in which competition is tight. European corporations continue to hold strong positions. However, it is possible to compete in the internal market. in order to secure a place in the marketplace, it is necessary to invest in long-term relationships, meet specific standards, and get liability insurance. Apparently, there are many barriers. The reality is that it is not at all difficult to overcome challenges, in addition to the fact that there are many intriguing opportunities. A trademark is one of the most important asset that a firm can possess, serving as an effective communication tool. Until now, much has been discussed about the European competition regime. What is important to keep in mind is that it is not a good idea to engage in unfair practices. Anti-competitive behavior is punished without any doubt.
There is a close connection between politics, law, and economics. To put it simply, they cannot be separated. When running a company, it is not out of the question to sell to state and local government. Selling to the public sector is something worth considering actually. It is required to know what services are of general interest and pay attention to environmental and social clauses. Does that sound difficult? It is not at all.
