Competitors are businesses or brands that provide customers with similar products. They sell the same or nearly-identical services or products in the same area. According to statistics, each company always has over 29 competitors. So, all businesses have Competition. Knowing and analyzing your competitors is a crucial principle for your business success and identifying and analyzing your competitors is an essential step for your business basics and your strategies. Competitors are of different types. You must know all kinds, analyze them and understand their principles. Next, let’s explore some types of competitors in business.
Direct Competition is when over two or more brands offer customers the same products and services in the same market—for example, McDonald’s and Burger King or Apple and Samsung. You can identify your direct competitors in different ways. First, you can do it with the help of customer feedback. It is simple before your customers choose your brand, they try to have experience with others too. Create some questions about this and include them in your surveys. And second, you can find your direct competitors with the help of online communities. Nowadays, people love to share their thoughts on social media platforms, so it is a great way to find your direct competitors.
Text type of competitors is indirect competitors. This is when two or more brands offer customers different products and services but in the same market and satisfy the same customer needs. You can find indirect competitors in various techniques. Some of them are keyword research. Search engines offer ranking with different specific keywords. So, all this is based on your SEO. Another way to find indirect competitors is by writing SEO-friendly content. An integral part of your indirect competitors is writing content that is related to your services or products. So, you can find your indirect competitors this way too. Also, you can use Competitor analysis tools to identify your indirect competitors.
And finally, potential competitors. This includes different businesses that offer customers similar products and give them real-time support but yet don’t appear in your business market. For example, if you are selling organic cosmetics in Paris and other businesses sell the same product in another European country, You are a potential competitor for them. Nowadays, when each company has an ECommerce website and can buy products across the world, potential competitors become an integral part of your competition analysis. So, pay attention to this when doing competitor research.
Understanding all these types of competitors and analyzing them can help your business stay unique and provide special services and products for your customers. So, first, it will improve your customer service; second, it allows you to stay modern and interesting for your customers; and third, it will allow you to learn from your competitors’ mistakes. You can ask yourself many questions before analyzing competitors; Do you know who your competitors are? Are they creating something new? or which strategies are they using?. Conduct competitor analysis, and understand their work principles because it is essential for your business success.