Final answer:
Competition occurs when customers take their business to competitors when their needs or wants are not met, driving businesses to improve to attract and retain customers.
Step-by-step explanation:
When customers take their business to competitors because they feel that their needs or wants are not met, it is an example of competition in the business world. This is a common occurrence in the marketplace where customers have the freedom to choose from different businesses and products.
Competition can be beneficial as it drives businesses to improve their products, services, and prices in order to attract and retain customers. If a business fails to meet the needs or wants of its customers, those customers are likely to switch to a competitor that offers a better value proposition.
For example, if a clothing store consistently provides poor customer service or has limited product options, customers may take their business to a competitor that offers a wider selection of clothing and a more enjoyable shopping experience. This can ultimately lead to a decline in sales and profitability for the business that failed to meet its customers' needs.