Who Are Your Competitors?
Who do you compete with? That’s an important question and, as you’ll soon see, not as straightforward as you might think. Businesses have a tendency to underestimate both the number and the impact of the competitors they have. This is a factor of pride in the product or service, the tendency to believe that there are no other alternatives, and a lack of understanding of the difference between direct and indirect competition.
Direct competitors are those that offer basically the same thing that you offer. A direct competitor for McDonald’s, for instance, would be Burger King. Virtually all businesses have direct competitors—or quickly will. Consider Apple’s iPad, for instance. When introduced it ...