In an effort to enhance the learning process in higher education, a new model for Competition-Based Learning (CBL) is presented. The new model utilizes two well-known learning models, namely, the Project-Based Learning (PBL) and competitions. The new model is also applied in a networked environment with emphasis on collective learning as well as collective outcomes. The new model, which is referred to as CBL, provides educators with an alternative solution to overcome many of student's deficiencies associated with traditional learning practices; such as lack of motivation, lack of self esteem, insufficient practical and real-life experience, and inadequate team work practices. The new CBL model makes a clear distinction between PBL and competitions and CBL. It avoids the disadvantages of competitions, while at the same time gaining from the many benefits of PBL. Identification features of CBL, components of CBL, as well as advantages are presented. An open source Learning Management System (LMS), namely, Moodle is used for the implementation of a networked environment to support CBL.