What is a market like a competitive environment?

The market is a competitive environment in which independent sellers vie for the right to sell their goods to customers. To understand what it is, you can, based on its basic elements, indicators of competitiveness of goods and types of competition.

Key elements of a competitive environment

The market is a competitive environment, which is based on the competition of manufacturers for the sale of their goods. Five elements of the competitive environment can be distinguished. The first of these is the commodity market. This is the sphere of circulation of goods that have no substitutes in Russia. It is determined on the basis of the economic opportunity of a potential buyer to purchase products in a certain territory and the absence of such an opportunity outside it. At the same time, interchangeable goods are an element of the product market.

The product boundaries of the market are the second element and are characterized by consumer properties of products. In addition, the formation of a product group plays an important role when its markets are considered to be one product category.

The third element is the geographical boundaries of the market, that is, the territory where buyers acquire the necessary goods. In this case, they have no opportunity to buy it outside this territory.

Competition is the fourth element of the market, which can be described as the competitiveness of business entities when their own actions do not allow fully unilaterally affect the conditions of commodity circulation in the market.

The competitiveness of the product and the product itself are two other elements of the market. Competitiveness is the level of technical, economic and other parameters of a product, thanks to which it is able to withstand rivalry with similar products. The main object of the market is products that have value and value, and also have reliability and a decent technical level.

Competitiveness indicators

Six basic indicators of the enterprise’s competitiveness allow maintaining its economic and social status at the proper level: technical and price indicators, product quality, terms of delivery and payments, especially the customs and tax system, as well as the degree of sellers' responsibility. As you can see, these factors make the market conditions most effective.