The quantity and intensity (eg strength, concentration and power) of businesses operating in the same market that provide the same or similar product or service. In general, the presence of competition forces businesses to look more carefully at how they can meet or exceed customer requirements, for example by offering lower prices, improving product quality, offering incentives, eg free gifts, as the businesses involved seek to gain a larger market share. Competition also encourages businesses to become more efficient in order to reduce costs and enable lower prices to be charged to customers.