Competition is like a race among businesses to attract customers. Companies compete against each other to offer the best products or services. Competition can be at three different levels.

Local Competition: This happens among businesses in the same town or neighbourhood. For example, if there are two pizza shops in your town, they're competing locally.

National Competition: This occurs between businesses across a country. Think of car manufacturers like Ford and Toyota competing nationally in the United States.

International Competition: This is when companies from different countries compete against each other. Apple and Samsung compete internationally for smartphone sales.

Having competitors does not mean that a business will automatically succeed or fail- rather, it relies on careful business planning and a consideration of all factors. For example, if Little Italy decided to open a coffee bar at a small rural railway station which already had one, it could be viewed as a bad business decision. However, if their reputation proceeded them by offering a superior product, better customer satisfaction or improved value for money, then their business might well  wipe out their competitor. Decisions like this cannot be taken lightly. You can probably name several examples where competitors appear to work alongside each other in harmony such as opticians, dental practices, estate agents, chemists, department stores, supermarkets, fast food chains, electrical retailers, etc.

Useful story on competition:https://www.bbc.co.uk/news/articles/cjw045jl9wxo

In order to keep a competitive advantage, it is vital that a business keeps its eye on what its competitors are doing and tries to anticipate what they are planning to do. Factors which influence are outlined below.

Differentiation: This means making your product or service unique compared to others. Apple's unique design and user experience give them a competitive advantage.

Pricing Policies: Offering competitive prices can attract customers. Walmart's "Everyday Low Prices" policy is an example. Similarly how a business determines prices for whole sale and retail products or services can have an effect.

Market Leadership: Being a leader in the market gives an advantage. Google's search engine dominance is an example of market leadership. 

Reputation: A good reputation can attract customers. People trust brands like Coca-Cola due to their positive reputation. This is something they company cannot buy and must earn. These are maintained over many years. A bad reputation can rapidly ruin a business no matter how large or small it is.

Market Share: Having a larger share of the market means you reach more customers. McDonald's has a significant market share in the fast-food industry.

Cost Control: Managing costs efficiently can give a business a competitive edge. Companies that produce goods at lower costs can offer better prices.

Technology Relationships: Strong technology relationships with customers, suppliers, and employees can improve efficiency and customer experience.

• databases holding customer details, purchase history and preferences, etc.

• telephone and online support.

Finishing an answer to a problem with a product or its operation might be resolves speedily by searching online or ringing an out-of-hours support line but relationships can be made, maintained or broken by the technology. For example, misunderstanding due to language differences, listening to annoying music while queuing for a response and sometimes being charged high costs, do little to build positive relationships.

While businesses are trying to manage their costs, they may be driven to outsource (buying services or products from outside suppliers, often overseas, to cut costs) services such as after sales, help desks, etc. and these can impact positively and negatively on their reputation. BT and British Gas both experienced such challenges.

Suppliers: All businesses rely on their suppliers and their ability to supply when required and at the agreed price. The external environment impacts on suppliers and subsequently the business being supplied. The process is known as logistics, and includes...

• supplies being available at the cost agreed (materials to supplier may have increased)

• transport(timescales interrupted due to road works, bad weather, ferry strikes etc)

• availability of personnel (interruptions due to holidays, sickness, strikes, shortages).

Employees: External environmental factors impact on businesses, one example being loss of productivity due to sickness. While holidays are usually planned and businesses anticipate changes to schedules in advance, sickness is generally unpredictable.

Other factors impact on the number of employees a business can afford and also the availability of potential employees when a business is seeking to recruit.

Examples of businesses struggling to recruit include:

Suitably skilled staff

Graduates with appropriate qualifications.

Competitive advantage helps a business stand out and succeed in a crowded market.

Attracting Customers: Customers choose a business that offers something special.

Higher Profits: An advantage can lead to higher sales and profits.

Brand Loyalty: Unique features build loyal customers.

Survival: In tough times, an advantage helps a business stay afloat.

Growth: With an edge, a business can expand more easily.

Importance:

Survival: In a competitive market, businesses need an edge to survive.

Success: An advantage is often the key to becoming a successful business.

Longevity: An edge helps a business last and adapt over time.

Innovation: To keep an advantage, businesses need to innovate.

Remember, competition pushes businesses to improve, innovate, and offer better value to customers. Establishing and maintaining a competitive advantage is essential for long-term success.