Where two or more parties strive for a common

Source of motivation
Competition motivates others to excel or to obtain recognition or to win an award. The practice of awarding prizes and scholarships to those who occupy the few top position on the merit is designed to foster creativity and promote striving excellence. Competition stimulates achievement by lifting the levels of aspiration for which some individuals work harder for success


Conducive to progress
Healthy and fair competition is considered essential for economic, social as well as technological and scientific progress. Through competition a proper man is selected and placed in the proper place. It is obvious that when a proper man is in the proper place the technological and general progress of the society cannot be hampered. People make their best efforts when they find themselves in competition. It is competition which has made inventions and discoveries in different fields possible.



Competition may lead to frustration
Competition may create emotional disturbances. It may develop unfriendly and unfavourable attitudes among the persons or groups toward one another. Unfair and unhealthy competition has the most disintegrating effects. It may lead to neurosis through frustration and to violation of the rules by those who fail in the struggle for status according to “the rules of the game”.



Competition may lead to monopoly
Unlimited competition in a capitalist economy gives rise to monopoly. It throws the real needs of the people into waste and causes starvation in the midst of plenty. It may cause fear, insecurity, instability and panic. For example, in the economic field, businessmen seek to protect themselves against competition that is, by erecting tariff barriers against foreign competition by agreeing upon prices. Labourers unite for protecting their wages and bureaucrats protect themselves through their associations.

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Competition may lead to conflict

Competition, if it is uncontrolled, may lead to conflicts which are considered inimical to group solidarity or cohesion. Sometimes it may become violent involving unethical and unfair means to divert the competitors’ attention from sportsmanship which is outcome of fair competition. Therefore, competition should always be healthy and fair.