Competition in Economics

In Economics, the term competition is referred to as the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms. In other words it is two companies striving for a greater share of the market to sell of buy goods and services. Here is an example of a two companies that are currently in competition.





Arguably two of the biggest companies today in the technological world are now competing to take over the entire market. These two companies are Apple and Google. Whether its the Chrome or Safari, Android or iPhone, Adwords or iAds, it is a constant battle for supremacy. But whats wrong with some healthy competition, Right? Apple does not seem to think so as they have heard rumours that Google is planning to compete with their iTunes program. You would think that having sold 100's of millions of songs and such a huge customer base would never have a company to compete with. Google thinks otherwise, as they are in preparation to launch their own music program called 'Google Music' offering similar features as iTunes such as having the ability to purchase music and movies online. With such a similar product you might be asking yourself, will I really switch from purchasing songs off iTunes and switch to Google after having dealt with iTunes for so long? I am sure most would say no as you have gained a trust with Apple that would keep you going back. This is why Google is planning to offer the same online products at a competitive price hoping to steal some of Apple's customers. As Apple has iTunes compatible only Apple products, Google will need to do the same in order to compete. This is why they are planning to have Google Music only compatible with their Android phones which have started taking over some of iPhone's market. Google will need more time to prepare their product if they are to make this product successful but only time will tell if this becomes a hot product or just another failed innovation.