Peanut, the main differences are: who owns the means of production and what is the sense of a production.
Normally we experience that a company develops and produces items to earn some money, that´s the foundation of the capitalism. A company is coerced to produce items which will find buyers, otherwise the company will get a problem. That´s the foundation for competition and progress.

A socialistic system works different. The means of production are in the societies hands, in other words in the states hands, that´s why not the competition and progress decide about the needs of production. This decision is made by a societies authority and the reason therefore is not forced by economical necessities. The question is what the population really needs for a life and what is not necessary (therefore). Normally do you such a decision for yourself (when you are shopping). Now you can see a major difference to your own present society, not yourself, other people decide what kind of life you can have. This is a foundation of a socialistic system, you will find it in many aspects of your life when you live in such a system.

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Do you like that kind of german folk music ?.