The role of competition in business and the need to protect competition

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Competition plays a very important role and is one of the strong driving forces to promote production and business development. Competition forces business entities to be dynamic, responsive, and proactive in improving professionalism, improving techniques, applying science and technology, and perfecting management organization to improve labor productivity and efficiency. economic results. Where there is a lack of competition or signs of monopoly, the economy is often stagnant and underdeveloped. Competition is an important tool to improve the efficiency of the economy in general and each sector of the economy in particular.

In business, competition is a civilized form of struggle between businesses for survival, and is a strong stimulus for the continuous improvement of organizations and products of business entities.

The need to protect competition comes from the meaning and role of competition in business. As an objective law of the market economy and as a law of natural selection, competition brings certain benefits to business entities that win in the market battle and causes damage to Business entities fail in the battle for customers and markets. In general, competition has the following basic roles:

1. Competition helps best satisfy the needs of the demand side/consumers

Through competition between suppliers/manufacturers, sellers or service providers, consumers have more opportunities to choose products that best satisfy their needs. Through classic competition methods such as competing through price or product quality, thanks to which, customers and consumers have better opportunities to access products, goods and services at reasonable prices. reasonable or better quality.

illustration. The role of competition in business and the need to protect competition

2. Competition plays a coordinating role, stimulates creativity and is the source of continuous innovation in socio-economic life

Competition has the ability to create pressure to prevent stagnation, overcome recession and force businesses to operate effectively. Competition requires business entities to equip themselves with the ability to quickly detect and satisfy all consumer needs and tastes. A competitive environment is an environment in which businesses must always mobilize, innovate, and improve not only technology but also types, designs, and business methods. In this way, competition creates continuous innovation and continuous development momentum. Competition is also an opportunity that forces businesses to apply new technology and scientific and technical advances. Competition always has a long-term goal of attracting more and more customers, forcing manufacturers and service providers to create products of increasingly high quality at increasingly lower prices. Thus, competition is also the source and driving force for the development of science, technology and high technology.

3. Competition is a natural law of survival, ensuring the distribution of income and economic resources into the hands of capable entities

Competition acts as a process of selecting and eliminating inefficient business entities, while creating opportunities for new entities to enter the market. From the macro perspective of the economy, competition is the driving force that reduces waste in business, helping to use natural resources and other resources optimally and effectively.

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