Business Basics - Taking a Look at the Competition

All businesses have competitors. All businesses must compete for customers and their market share. If there is any room for competing firms then you can rest assured that the applicable industry will see new competing firms.

For all those notions expressed above exploring the competition and the competitive environment of your industry is a necessary activity for any business.

Business competition can come in many different shapes and forms.

Competition can come from a local business, it can come from web based company. It may come from a substitute product or service. It may come from a vast variety of sources.

No matter what shape or form competition comes in one thing that is absolutely concrete and necessary for any small business is that one must understand the competition on a intimate level if you are to have any sort of chance at maintaining a long term competitive edge over your competition.

Considering Competition

What and how you go about examining and considering the competition will depend on your business. Below I have prepared a list of key areas to explore when considering the competition.

Local Competition

If local competition exists then this should be a definite focus of competition consideration. Taking a look at factors such as location, local advertising mediums, community reputation, and operation history are some very important aspects of local competition.

Competing Alternatives

Explore alternative products or services does the consumer have to choose from. Explore the strengths of these alternatives. Find the weaknesses of these choices. Figure out how you can exploit the weaknesses and offer one of your strengths that makes your product or service the superior solution to what ever problem or need your product fulfills.

Future Competition

What does the future competitive landscape look like?

Take a look at how new technologies will influence the competition. Examine the barrier to entries. How sturdy are those barriers. How can you make it harder for new competitors to get started. Try and create a generic game plan for dealing with a new competitor.

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