Konkurencijsko vijeće Council of Competition

Benefits of competition for low-Benefits of competition for low-income groupsincome groups

having an advantage over competition is like having having an advantage over competition is like having a gun in a fight with knivesa gun in a fight with knives

Benefits of competition for low-Benefits of competition for low-income groupsincome groups

having an advantage over competition is like having having an advantage over competition is like having a gun in a fight with knivesa gun in a fight with knives

Sofia, Bulgaria,

November 12, 2012

Sofia, Bulgaria,

November 12, 2012

Council of Competition

Council of Competition

Benefits of competition for low-income groupsBenefits of competition for low-income groupsBenefits of competition for low-income groupsBenefits of competition for low-income groups

Condition of effective economy of

a certain country

• Harmonization of sectoral policies

• Harmonized applcation of sectoral policies in a market legislation

Council of Competition

Council of Competition

Benefits of competition for low-income groupsBenefits of competition for low-income groupsBenefits of competition for low-income groupsBenefits of competition for low-income groups

Aim of the market competition policy:

• Protection of the overall competition processes of all participants in the market

• Creation of conditions for fair market competition of all participants in the market

Council of Competition

Council of Competition

Benefits of competition for low-income groupsBenefits of competition for low-income groupsBenefits of competition for low-income groupsBenefits of competition for low-income groups

Potential source of problems for small-sized companies

• Mergers and acquisitions, namely concentrations of medium-sized and large enterprises

Council of Competition

Council of Competition

Benefits of competition for low-income groupsBenefits of competition for low-income groupsBenefits of competition for low-income groupsBenefits of competition for low-income groups

Fair market competitionFair market competition enables undertakings to have a fair market

competition at four levels of competition as follows: • Competition of brands – competition is composed of similar

products directed to the same consumers with similar prices,• Competition within an industry – among undertakings producing the

same product or products assortment,• Competition from the point of view of satisfying the same needs (car

industry etc), but also at the level of,• Generic production – all undertakings aimed at sale of products are

meant by competition.

Council of Competition

Council of Competition

Benefits of competition for low-income groupsBenefits of competition for low-income groupsBenefits of competition for low-income groupsBenefits of competition for low-income groups

Strategic associations as a chance for small-sized enterprises

• formed with the aim to extend the market as well as to stabilize business activities of undertakings

• They increase their competitive postitons trough joint marketing arrangements, licensing, R&D, procurements, joint investments, access to modern technologies, access to rare resources, simplified conditions to enter the market etc.