In the field of economics, competition refers to a scenario in
which many economic companies [Note 1] compete with one
another to obtain commodities that are limited by modifying one
or more of the following components of the marketing mix: price,
product, promotion, or place. In the traditional school of economic
thought, competition drives commercial enterprises to produce
new goods, services, and technologies. These advancements would
provide customers with a wider range of options and higher quality
goods. When there is a greater variety of a product available on the
market, prices for those products are often cheaper in comparison to
what they would be if there was either no competition (a monopoly)
or very little competition (an oligopoly).
The amount of competition that is present in the market is determined
by a range of factors, including the number of firms, the
obstacles that stand in the way of new firms entering the market,
the information that is available, and the availability and accessibility
of resources.