Disadvantage of Competition

· Too much stress.

· Work pressure affects health of employee.

· The employee may not be too sympathetic towards his or her employees as he or she may be interested only in results.

· Team spirit may get affected as each employee would be suspicious of the other person’s motives.

· Unhealthy competition. One employee bringing down another employee through malpractices in order to supercede the person.

28) How does competition affect business?

Direct competition exists where organisations produce similar products that appeal to the same group of consumers. For example when two supermarkets offer the same range of chocolate bars for sale.
Indirect competition exists when different firms make or sell items which although not in head to head competition still compete for the same £ in the customers pocket. For example, a High Street shop selling CD's may be competing with a cinema that is also trying to entice young shoppers to spend money on leisure activities.
Businesses are strongly affected by competition:
a. the price they charge is limited by the extent of the competition.
b. the range of services and the nature of the product they sell is influenced by the level of competition. For example, a business selling an inferior product to that of a rival will struggle to make sales unless they cut their prices.

29) What are the biggest competitive threats to companies?

1) Inability to Innovate

2) Losing Your Competitive Advantage

3) The High Cost of Reckless Hiring

4) Poor Leadership & Communication

30) What is the character of competition in Russia?

I can say that nowadays in Russia there are different types of competition such as imperfect competition in the HoReCa area, oligopoly in airlines sector, mining and oil and monopoly in the railroad and underground.