What does competition mean?

"Competition" is the mutual rivalry or struggle between enterprises, for example in the struggle for market share, turnover, profit, market power, reputation, or purchasing power.

The more competition there is, the more enterprises are forced to operate efficiently. Competition is therefore good for cost efficiency and stimulates innovation. Economists have identified different types of competition, of which the most ultimate form is 'perfect competition'. This is a theoretical model of perfect competition that rarely occurs in practice.

Competition plays a crucial role in stimulating healthy market operation and ensures that companies continuously improve and innovate.