Fair Competition - Definition & Meaning
What is Fair Competition?
When the competition between companies or businesses is based on factors like quality, price and customer service and not on practices which is condemned by public or law like predatory pricing or bashing of competitors.
Fair competition between businesses exists in the market when companies compete on equal terms and where same rules and conditions are applicable to all the participants in the market. In fair competition companies doesn’t harm its competitors’ ability to compete and the sentiment of considering competitors’ loss as your gain is absent from the picture. Sometimes, fair competition plays a crucial role in the growth of a country’s economy and if the marketers practice fair marketing tactics, it can provide a plank which can boosts a country’s economy a lot.
Advantages of fair competition:
• Lower consumer prices: In fair competition, one common method which companies use to attract customers is offering lower prices than the competition may be in form of discounts or coupons. There is no compromise with the quality of the product and is kept the same.
• Improvement in technology and encouraging innovation: In fair competition companies often try to overtake competition by improving technology and focusing on innovation so that they can produce cheaply and increase the profit margins.
• Choice for Consumers: Fair competition also brings in the advantage of increased number of choices for the consumers. Since in fair competition bigger companies doesn’t abuse their powers and hence there are more number of competitors in the market providing more choices to the consumers.
• Quality of Service: Companies also provide better service to the consumers in a fair competition to increase its customer base. The companies take responsibilities for their products and assist their customers in every possible way.
• Information: Fair competition also allows more accessible information to the customers. Free flow of information helps customers to make informed decisions.
Hence, this concludes the definition of Fair Competition along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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