Identifying Customers Markets and Demand

                                                                     "Competition"

Having a clear understanding of what your customers expect from your products/services is very important.  But, also understanding what your competition has to offer is equally important.  As stated in our text, putting time into knowing the competition's products/ services is key to your venture's success.  Learning why customers choose one over the other is key.  Considering all competition when planning your business venture, to make sure you have the edge over the others in your industry.

There are two types of competition direct and indirect competition.  Direct competition offers similar products and services.  With direct competition, customers will consider price, location, service levels, and product features when deciding on where to spend their money.  It is known that, not all people will choose the same combinations of options.  So, offer a unique mix of options for customers to choose from.  Offering a lower price does not mean your guaranteed to gain customers.  Understanding where your competitors are positioned is key to identifying the gaps that your business can fill. Indirect competition are businesses that offer slightly different products/services, but target the same group of customers with the same goals of satisfying the same needs.  It is known that all businesses face this kind of competition.  These competitors do not offer the exact same products/services but, they set out to meet the needs of your customers, just in a different way.  With that being said, consider all the ways your customers needs can be satisfied.  Creating a strategy for handling this type of competition, you create an advantage over businesses that believe they are unique and have no direct competition.

Source: smallbusinessbc.ca/article/understanding-your-competition