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The phrase "competitive situation" is correct and usable in written English.
You would use it to refer to a situation in which people are trying to outperform one another in order to achieve a desired result. For example: "The new hires quickly found themselves in a competitive situation, needing to prove they were worthy of their positions."
Exact(60)
"It's the competitive situation," Mr. Bobrowski said.
This was a very competitive situation".
"There's not yet a competitive situation.
The competitive situation has helped with this.
"It's more of a competitive situation there," he said.
I've been in a competitive situation almost all my life.
In the second variant, a highly competitive situation was created.
He conceded that he could face "a competitive situation" in a primary.
I get nervous when someone has never put themselves in a competitive situation.
Just observing what I've seen on television, they believe that they're in a very competitive situation.
Sometimes a company might aim for a monopoly in a highly competitive situation.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com