Competition
The rivalry between businesses offering similar products/services to the same market.
Real World
When Aldi and Lidl aggressively expanded into the UK, they forced Tesco and Sainsbury's to cut prices and launch own-brand budget ranges — direct evidence of how competition drives down prices and spurs innovation.
Exam Focus
When evaluating the impact of competition, consider both positive effects (lower prices for consumers) and negative effects (squeezed margins for businesses) to access evaluation marks.
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