Competitors 

Competitors offer similar products or services in the same market or industry as your business. They are vying for the same customer base and trying to meet similar needs or solve the same problems.

Some key factors are;

·       Products or services, and how they compare on quality, price, features, and value

·       Market positioning, targeting premium customers, budget-conscious buyers, or a specific niche

·       Marketing channels to reach customers (e.g., digital marketing, social media, traditional ads)

·       Customer service experience and support

·       Strengths and weaknesses identifying opportunities or threats

·       Market Share, how much and  growing or shrinking?

 

The Same or Similar Products

Competitors offering the same or similar products sell items that meet the same needs or solve the same.  These are direct or indirect.

 

Direct Competitors

Businesses that offer products or services that are almost identical

·       Sports footwear sellers, brands like Nike, Adidas, or New Balance are direct competitors.

·       A coffee shop serving a similar menu is a direct competitor if you're running a similar cafe.

 

 

Indirect Competitors

Businesses offering products that aren’t exactly the same but satisfy the same customer needs.

• Sportswear not directly competing with a tech company selling fitness trackers, both cater for health-conscious consumers
• A fast-food restaurant not directly competing with a high-end restaurant, both serve customers looking to dine out

Research Questions

• How do their prices compare to yours?
• What unique features do their products offer?
• How do they position themselves in the market?
• What are customers saying about their products?
• How much of the market do they control, is their share growing or changing?

The Same or Similar Industries

Same or similar industries operating within the same general market or industry.  

Direct Competitors
Businesses operating within the same industry and offering similar products or services.

Manufacturing technology hardware competitors could be companies like Apple, Dell, or HP

Clothing store, competitors could be other stores like H&M or Zara.

 

Indirect Competitors
Businesses operate in the same industry offering products or services that aren’t exactly the same.

• A gym might have indirect competitors in the health and fitness industry offering fitness apps, home workout equipment, or nutrition products
• A travel agency’s indirect competitor could be a flight booking website like Expedia or a hotel chain

 

Why Industries Matter

Understanding the landscape of competitors within the same or similar industries helps businesses assess their position in the market, identify emerging trends, and respond to challenges. Be aware of;

• The market landscape
• Innovation and differentiation
• Benchmarking
• Strategic positioning
• Cross-industry insights
  
  

Researching Industry Competitors

Methods for conducting research include;

• Industry reports
• Customer segments
• Product and service comparison
• Online research
• Customer feedback
  

 

Disruptors

Disruptive competitors offer more efficient, cost-effective, or innovative alternatives to traditional products or services fundamentally changing how market operates, usually by leveraging technology.

 

Key Characteristics

Product and Service Innovation

• Subscription services (e.g., Netflix)
• Peer-to-peer platforms (e.g., Airbnb)
• Direct-to-consumer models (e.g., Warby Parker)  

 

Technology

• Automation and AI
• Blockchain

 

Niche Markets

• Targeting smaller, underserved, or overlooked customer segments.

 

Value Proposition

• Affordable pricing than incumbent competitors
• Online or digital products or services

 

Customer-Centric

• Focus on the customer experience making it simpler, faster, or more personalised.

 

Disruptive competitors (Market Research)

Disruptive competitors challenge businesses to rethink their strategies to adapt to new consumer expectations and technological advancements. 

 

Non-Traditional Entrants

• Startups or companies entering your market with unconventional approaches
• Innovators shifting dynamics by introducing new products or services that are not anticipated

 

Customer Sentiment Analysis

• Social media or customer feedback detecting shifts in consumer preferences.

• Offering something that resonates more than traditional offerings

 

Emerging Technologies

• Emerging technologies and business models, such as AI, blockchain, IoT, and cloud computing.
• Startups and disruptors leveraging technologies to create game-changing products or services

 

Data-Driven Insights

• Leverage of big data, AI, and other advanced technologies
• Technologies to track customer behaviour, predict trends, and understand the long-term effects of disruptive changes

 

 

Market Forecasting

• Disruptive innovation requiring long-term thinking.
• The rise of autonomous vehicles disrupting car manufacturing, transportation, logistics, insurance, and more

 

Adjacent Markets

• Companies using new technologies or business models
• Anticipating potential disruptions

 

Scenario Planning

• Anticipating market disruptions
• Imagining potential disruptive competitors entering the market creating  shifts in consumer behaviour

 

Companies identify opportunities to differentiate themselves, improve their offerings, and adjust their strategies to stay competitive in the market. Analysing direct and indirect competitors, makes it easier to position products, identify potential gaps, and differentiate offerings in a crowded market.

Disruptive competitors challenge existing business and industries reshaping them.  They offer consumers new ways of thinking about products and services.  Recognising disruptive trends early helps businesses make strategic decisions to stay relevant.

 

For expert funding, mentorship, business growth solutions, and entrepreneur programs, visit: The Entrepreneur Studio

Follow Us:

Facebook – https://www.facebook.com/people/The-Entrepreneur-Studio/61552810916102/

Instagram – https://www.instagram.com/theentrepreneurstudio/

Twitter – https://x.com/T_E_Studio

LinkedIn – https://www.linkedin.com/company/the-entrepreneur-studio/, Manmeet Abroll, Andrew Evans