Does competition create the leanest products and services?

The Western democracies have long valued the effects of competition in their markets, whereas historically the command and control economies have tended to favour state ownership and managerial control to ensure employment and efficiencies of scale.

Whilst there has been much evidence based analysis of the merits of both systems, speaking from the UK, I have only been exposed, in business, to the operation of a competitive market where my business success relies on me winning business from potential customers in a competitive arena. To do so, I have to demonstrate, to that customer, that my product or service is of better value, greater utility, to them, than those of my competition or from the ultimate competition which we all face, the decision of the client to do nothing.