Competition is a contest between firms to win customer. It is a fundamental economic force that benefits customers as firms are under pressure to constantly improve products and offer attractive prices. The following are common types of business competition.
Products & Services
The most obvious competition, where business compete of quality of product and services
Another obvious one, it's about the intangible elements of products and services such as diligent customer service at a saloon.
Similar products and services typically compete intensely on price.
A producer with lower unit costs can choose to compete on price to drive competition out of the market.
A bigger brand can charge the premium for the similar product or services and easy to sale.
A sales force that can close sales can be a significant competitive advantage in industries such as business-to-business services.
Location based competition such as the only coffee shop at an airport.
Technologies & Standards
Competition to establish a technology or standard. For example, Mobile and landline phone.
A firm's reputation in areas such as reliability, quality and sustainability.