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    Inclusivity Officials
    Feb 28 th, 2018
    Browse By Business Needs-Browse by History-Managing a Business-Managing a Business No Comments

    Who is my Competitor

    Who is my Competitor? Understanding your competition?

    As an owner you should always know who your competitors are and what are their weaknesses, offerings, products etc. Apart from knowing about your customer , knowing your competitor helps you to devise a strategy to stay ahead of the competition.

    Knowing who your competitors are, and what they are offering, can help you improve your products, services and marketing. It will enable you to set your prices competitively and help you to respond to rival marketing campaigns with your own initiatives.

    You can use this knowledge to create strategies that take advantage of your competitors’ weaknesses, and improve your own business performance. You can also access any threats posed by both new entrants to your market and current competitors. This knowledge will help you to be realistic about how successful you can be.

    Identifying your Competitor- resources

    • Yellow pages
    • Business Directories
    • News paper
    • Advertisement
    • Trade magazines
    • Expo and trade fairs
    • Online research
    • Information from Network
    • Information from Customers
    • your local Chamber of Commerce
    • Employees working in other departments
    • Market research
    • press reports
    • Business Network
    • exhibitions and trade fairs

    Every business faces competition. Competition can be in any form, Direct or Indirect. The main basis of competition is to provide offering of a product or a substitute which takes away sales from your business. In order to survive in a market were companies are competing across the globe, it becomes really important to know about your competitors.

    Direct Competition

    There are different front where businesses compete with each other. There will be some businesses that will compete on the price point, others on quality, some on responsiveness. Understanding competition becomes really important in this scenario, it also helps to identify the opportunities available in the competition. Some examples of direct competition are the Big cola companies like Coke and Pepsi, they literally sell the same product and are vying for the same space. Similarly take the case of a hawker selling grocery and a Grocery market, although they operate in different segments they are direct competitor as they are vying for the same space. The competition exists because of variety of choices consumers make over like prices, speed, service, features.

    Indirect Competition

    The basic difference between a direct and an indirect customer is that in indirect competition the need can be satisfied by a substitute eg. Suppose you are thirsty, the need of the consumer is thirst that can be fulfilled by a lot of indirect competitors like Cola producer, Local juice stall, packaged water/drinks etc. All of these products are different from each other but all are competing in the same space.

    Indirect competitors are businesses that offer slightly different products and services, but target the same group of customers with the goal of satisfying the same need. These are sometimes also known as substitutes. A small scale entrepreneur should understand the needs of his customer and plan his strategy so he can also compete as an indirect competitor for different products in the same space. This will give him a new channel and an advantage over others

    • Who are my top three competitors?
    • What is my competitive advantage?
    • Range of products on offer?
    • Direct /Indirect Competiton
    • Profitability
    • How long have they been in business?
    • What are their positive & negative attributes in the eyes of customers?
    • Who are their long-standing customer
    • How do they distribute & deliver
    • What is their competitive advantage
    • Online Presence
    • What are their pricing structures?
    • Do they operate in the same geographic area?
    • Have there been any changes in their targeted market segments?
    • What is their size? Revenues?
    • What is their percentage of market share?
    • What is their total sales volume?
    • What is their growth rate?
    • How do they rate on:
      • customer service?
      • quality of product/service?
      • hours of operations?
      • pricing, incentives?