The Intensity of Local Competition on a Global Level

The variable "Intensity of Local Competition" refers to the degree of rivalry among businesses operating within a specific geographic market. This variable measures how fierce the competition is between companies offering similar products or services in the same area and can be influenced by several factors, such as the number of competitors, their size, market share, and marketing strategies adopted. A high intensity of local competition implies that companies must put in more effort to maintain or increase their market share, using tools such as price reductions, improvements in product or service quality, and innovation to differentiate themselves from the competition. In this context, competitive pressure can drive companies to continuously improve their operations and customer offerings. Conversely, a low intensity of local competition could indicate that there are few competing companies, or that the present businesses do not engage much in direct competition, allowing each to maintain a more stable position without significant efforts to attract customers. The intensity of local competition can significantly impact a company's profitability, influencing prices, profit margins, and innovation. A highly competitive market tends to be more dynamic but may also present greater challenges for business survival, particularly for new entrants or small companies. The data refers to the period between 2013 and 2020.