Competition is defined according to the Latin: “competentia” , to any type or nature of action that implies a confrontation at various levels , in which people or situations between two or more members are involved. The confrontation that develops is to follow a common goal between the parties involved, everyone wants to achieve the same result or benefit.
It also has other meanings and connotations, for example, this concept is applied to the idea of highlighting certain features of the skills, abilities, skills and related issues of a person or organization that could put it at an advantage over its rival, seen both from the positive and negative point of view.
This type of competence has certainty implications in judgments or analysis in all areas in which it may be involved, for example, in the historical, scientific, legal context ; to mention the most common. Here, the fact is presented as an irrefutable, measurable, unquestionable fact; where it seeks to adhere to the evidence of the matter.
This type of competence refers in its nature to the strictly legal environment, that is, it is implicit in judicial matters and this type of competence only has a place in the so-called judicial order bodies . These may be federal, state and/or local, depending on your jurisdiction.
This defines the type of competence that is closely related to the powers that the court has, from the legal point of view, which is part of a trial process.
Types of competition
It is said that a person has basic skills when he or she is capable of being able to skillfully handle all kinds of information that is required in order to successfully complete the resolution of all kinds of logical, arithmetical or reasoning problems ; have the ability to handle the understanding of all kinds of processes and / or procedures that are aimed at solving problems. All these skills will allow you to have optimal development in the field of the labor market.
From the point of view of the organizational behavior of the worker, reference is made to this type of competence when the employee’s performance is evaluated , focusing on the objective of evaluating his behavior, assigning values to the actions carried out in the same company to determine the degree of competence displayed by said employee.
From the organizational point of view, reference is made to this type of competence when it refers to the skills, abilities and mastery of operational techniques that are essential, typical of a given position within the organizational structure of the company. In general, these domains of techniques are closely related to the technological processes in the line of work, whether operational or management.
It focuses more on recognizing the skills that each of the members of an organization has, in addition to the behaviors that they reflect in daily work and that allows, among other things, to know the capacity to respond to certain situations.
From the point of view of a business organization, this type of competence is recognized, the capabilities that the employee has to be a candidate and manager in a certain position ; within them we find the basic labor competencies, in which a correlation is manifested with the degree of studies available and which ranges from basic to secondary education. It will be known as specific labor competence, when the member of the company has higher education, which allows him to have the opportunity to develop more specific labor competences and can solve them.
This type of labor values is given to the worker according to the type and hierarchy of the position that they have within the organization chart of the company. The aim is to give the company a better performance from the administrative and operational management point of view, always seeking to achieve the highest quality standards.
Types of competition by degree of competitiveness
In this way, the competition that a certain company has that positively influences the acquisition of a good or service by the prospect in a partial way is determined , that is, within a value chain or distribution channel, the exchange operation of goods for currency, occurs between the buyer and the producer, managing only portions of the total production.
Characteristics of perfect competition
Among the most important we have the fact that there is a scenario in which the company puts its goods or services for sale on the market at the price it decides. There is a sales approach based on price control and in it, every competitor has the same opportunities to know the price that its competition manages precisely.
In this case, the opposite scenario to perfect competition is presented; In this case, there is no direct price control, but this value is indirectly affected by various external factors such as the supply and demand of the product or the behavior of the stock market and/or type exchange.
Types of imperfect competition
This type of scenario occurs when there are few competitors in the market dynamics and it is possible to have an influence on the establishment of prices. In particular, the large companies are the ones that function as an agent of influence of prices in the market.
The companies that have the opportunity to act as oligopoly competitors are naturally the companies that are leaders in a certain market, those that have a very solid financial structure, and even those that could control prices.
This type of scenario occurs when in a given market, there is only one product that satisfies the need for which it was designed, and for this reason, it can directly control the price of the product or service. This monopoly prevents other types of products similar to theirs from being developed on the market. Hence, in practice, the monopoly is not fully accepted by companies in free competition.
Oligopoly with differentiated products
Regardless of whether differentiated products are offered in a certain target market, in which perfect competition can presumably occur, the opposite happens, the companies that are leaders in said market have the ability to influence the establishment of the prices of goods or services. services, for its production capacity and supply in the market.
Types of competitions by buyers
This type of scenario occurs when the group of buyers that belong to that group are few, and even so, they have the ability to control or influence the establishment of the prices of a certain good or service to which they are related. Not only can you have control over prices but also over the issue of production, which allows you to control the supply and demand of the product or service, one more way of managing prices.
This is how competition develops when those who acquire goods or services are few in relation to the offer that is presented, and for this reason there is an influence on the prices of the good or service itself. The buyer, being unique, can directly pressure and/or control the supplier of said good or service, as it is the only purchase guarantee.