Well, if there is a lot of competition for a product and its varieties, the market conditions are called tough. Usually the strongest companies survive in a market and when it’s very competitive, those strong companies are the one of choice for an investment. If there is less or no competition also think twice. It depends on the market entrance conditions. A rare earth mining operator or a very large and deeply integrated software producer has probably not that much to fear from other competitors, but if a company produces cheap plastic parts – that can be a tough one. Still, it is a matter of whether the shares are available for public investors and a big part is pricing for all of them.
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