What is competition?
The word competition brings to mind images of races, contests and rivalry. An activity in which someone wins or someone is the best.
Who are the competitors?
Competition involves all of the suppliers of goods and services that people use. Of course, mobile phone providers are not in competition with car dealerships, just as a swimmer does not compete with a gymnast. This means that competition takes place among suppliers of the same goods or services.
Where does competition take place?
All competitions take place in an arena designed for that purpose. In this context, competition among businesses occurs in the market. The market has two dimensions which are: (a) the product market which simply means that competition is among suppliers of identical products, or at best, products that can be used in a similar fashion, and (b) the geographic market that specifies the location in which the competition is taking place.
Why is competition important?
Competition encourages everyone to do better. This results in superior products and services available for consumers on the market at better prices. It also forces businesses to constantly improve themselves. The technology world is a prime example of a highly competitive industry. Computers, mobile phones and all their accessories, become old by the time you get home.
How do businesses compete?
The winner in the competition between businesses is the one with the most consumers purchasing its products or services.
Like most competitive events, some businesses compete fairly, while there are other businesses that sometimes break the rules or cheat.
What does the CARICOM Competition Commission do?
The CARICOM Competition Commission (CCC) ensures that competition is encouraged and protected but does not protect the competitor. The CCC functions similarly to an umpire or a referee.