Competition For Entrepreneur In The Marketplace
Whenever You as a new entrepreneur enter in the marketplace
to establish and grow your business, you see that, at the same time, you have
to face higher competitions from already established big firms in your field
making huge profits in their businesses. Now you need to make a detail analysis
of your competitors in the marketplace because you want to establish and grow
your business for a long period of time.
Competitors Analysis
A Competitors Analysis is the complete and detailed
analysis of the competitors in the marketplace. It helps you in identifying
your strengths, weakness when comparing to your competitors in your niche or marketplace.
The entrepreneur must identify the competitors in his / her
target market in order to compete with the competitors successfully. For Example,
if the entrepreneur provides the services of Graphic Designing, then he / she
must provide this service in better quality at a reasonable price than his /
her competitors in order to attract customers to buy your services.
In Competitor Analysis, the entrepreneur should decide the market in which he / she will compete with his / her competitor and it is very important as it decides the competitors’ strategy of the business. For Example, if an entrepreneur enters in the market of Article Writing, then he / she should consider the top Article Writers, who write unique and quality contents for the business. The new entrepreneurs should consider the quality contents and unique expression of writing an article and then accordingly write an article in his / her own expression with his / her own experiences.
Kinds / Types of Competitors In The Marketplace
In the life of business, an entrepreneur faces mainly three
types of competitors and these are discussed below.
1. Direct Competitors
These competitors are direct because they are selling the
same product as you as business owner sells to the customers. The competition
is directly affects your price levels, quality of products, difference packages
and so on. The new entrepreneur can influence the existing customers of the
competitors by introducing the product in a better way that can attract and
satisfy the customers. The new entrepreneur applies different marketing
strategies to influence the customers and can enter into the market in a better
way. For Example the entrepreneur can offer Free Trials, Products Samples free
of cost to existing customers in the market and provides an opportunity to
capture customer value in return. This is the best strategy to compete with the
direct competitors and influence already existing customers of the market.
2. Indirect Competitors
Indirect Competitors do not compete with the new or
existing entrepreneurs directly. They compete with those close substitute
products that are available to customers as a substitute. For Example, Pepsi
and Coca-Cola, Mirinda And Fanta very close substitute to their products. If
the quality and price of Fanta changes it will strongly affects the prices and
quality of Mirinda’s products. Customers also feel panic when the prices or
quality of Fanta changes, they will definitely purchase or buy the products of
Fanta if there is decrease in prices or increase in quality of products.
3. Future Competitors
Any competitor can come to the place of Direct or Indirect Competitors
for your business in nearer future. If you are an entrepreneur and compete, for
instance, in technology market, then you see that lots of Mobile Companies, IT
Companies launches new products with innovative features can become future
competitors in nearer future. So, you should always make a complete analysis
for your future competitors.
So, If an entrepreneur wants to enter in the field of
Competitor’s Marketplace, he / she must compete the Competitors Analysis. An
new entrepreneur can learn from his / her competitors whether these competitors
are Top, Middle or Low in the Marketplace. He / She should learn from any type
of competitors and produce or sell the products in a better way.
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