Market competition is an environment that requires an ideal reputation

Today, market competition is not just a term, but an expression that defines the nature of relationships in society. Her influence is not limited to business alone. The spirit of rivalry is everywhere: from sports fields to places of romantic meetings. Nevertheless, the notion of market competition is a purely economic term, mostly related to the world of finance and business. So what is this, and how does it affect the daily activities of economic agents?

If we take this concept in a broad sense, then market competition is producers, intermediaries, consumers of whatever, and their constant interaction among themselves. The escalation of this process is inevitable and grows with the level of consumption. Market competition is, in fact, capitalism in its purest guise. The first task here is to defeat the competitor and to be in the "ladies". In a narrow sense, market competition is a rivalry unfolding between market participants for the best conditions (production, purchase and sale of goods and services).

Often, the goods / services of firms in the same market niche carry a minimal set of significant differences. How can you stand out against the general background? Some companies prefer to increase their share of sales by stepping on the path of price wars. Others seek to achieve success by improving the quality and reliability of their products. Both of them are not ashamed to wave the colorful flag of advertising, trying to achieve fame in the consumer circle (persistently forgetting that "known" does not mean "preferred") ... How to catch your wave and stay afloat in terms of modern commodity- Money relations? From corporate strategy to leverage in a particular situation, each organization goes its own unique way. But can there still be a universal way to get ahead of rivals in business? ..

The forms of market competition are diverse. It is generally accepted that competition is perfect in developed and developing countries (although this is not always the case).

To become truly unsinkable, the company does not have enough to keep the right hand on the pulse of consumers, and the left one - on the throat of competitors. The long-term forecast for the firm, whose leadership does not attach special importance to reputation, is sad, caring only about "honors and gold". So to say, "dry the oars, sir!". Market competition is an aggressive environment, only the fittest can survive.

"The positive reputation of the company is the most successful investment in its long-term stability," - about this sounds the cherished formula of well-being. Not once such a statement occurs in interviews with the heads of the largest corporations.

A good reputation in business is defined as the company's behavior in the market that is ethical and moral in accordance with ethical and moral standards, which is beyond its production activities. In fact, it is an intangible asset of an enterprise that determines the degree of attractiveness of the company.

The advantages of good reputation are obvious. This is a long-term partnership, and more profitable investment proposals, and a chance to attract highly qualified new specialists. Also, the "correct" reputation of the firm is a strong motivating factor for the already attracted employees. There are known cases of employees performing heroic deeds in the name of their company (as, for example, during a fire in 2003 in one of the shops of Koenigsegg, when the workers rescued their equipment and products from the fire without waiting for the firefighters to arrive).

Well, of course, consumer loyalty directly depends on the reputation of the company. "Everybody wants to buy from good guys," recalls the old American slogan, which is difficult to disagree.

The risks that can be encountered using a "good name" in the competition are:

• There is always someone who wants to tarnish the reputation of your company, which you have so long and persistently created. And then everything will depend on your diplomatic abilities.
• The company may be "related" to innovative activities. The existing reputation always imposes certain obligations, it needs to correspond. If consumers and partners feel deceived in their expectations, this will affect your business much worse than the intrigues of "enemies."

Of course, a good reputation is not a panacea for the headache that competitors can deliver, but it is still an effective tool that can greatly facilitate the company's progress towards its goals.