Competition is a market situation in which firms or sellers independently strive for buyers’ patronage, in order to attain a particular business objective; in most cases profit, market shares, and/or sales.
Competition is an important driver of competitiveness as it encourages entrepreneurial activities and market entry.
Effective competition policy and law can promote competitiveness and an economy’s growth prospects and can work with other complementary policies and strategies to enhance trade, investment and resource mobilization.
Competitive markets can add and do contribute to productivity, cost efficiency, low process, innovation and therefore economic growth.
The TTFTC supports competition for the following reasons:
- Increased competition is an important way for businesses to grow to efficient sizes which, in turn, serves to reduce inefficiency.
- Greater efficiency better enables businesses to compete in global markets, or to compete more effectively in their domestic markets because of the desire to keep ahead of rivals.
- It brings about innovation, technological development and also promotes economic growth.
- It stimulates businesses to increase their productivity and efficiency and thereby improve their market position.
- It provides an incentive for businesses to perform at their best, leading to the production of a higher quality and a wider choice of goods and services at competitive prices.
- It encourages entrepreneurial activities and market entry.
- It can work together with other complementary policies and strategies such as Industrial Policy and National Development Plans.
- Competition law and policy are key instruments for addressing globalization, including enhancing trade and investment, resource mobilization, harnessing knowledge and reducing poverty.