A competitive market is a market structure where competition is at the highest possible level. It is a scenario where different economic firms are in contention to obtain goods that are limited by varying the elements of the marketing mix: price, product, promotion, and place). In a competitive market, there are a large number of buyers and sellers, and no single entity controls or influences the market. The goal of a competitive market is to establish the best circumstances possible, so both the buyer and the supplier profit from the sale of goods or services.

Some key characteristics of a competitive market include:

• Free entry and exit: New firms can enter the market easily, and existing firms can exit the market without significant barriers.
• Homogeneous products: In a perfectly competitive market, all firms sell identical products, and consumers perceive them as perfect substitutes.
• Price takers: In a competitive market, firms are price takers, meaning they have no control over the price of the product and must accept the market price.
• Large number of buyers and sellers: There are many buyers and sellers in a competitive market, and no single entity has significant market power.

Competitive market analysis is the process of determining who your competitors are, researching their strategies, and unpacking what they do well (and not so well) . It can help businesses avoid wasting resources, inspire new opportunities, and stay one step ahead of the competition.