Question

How should the firm define its competition? Why is this decision critical to success?

How should the firm define its competition? Why is this decision critical to success?

Homework Answers

Answer #1

Competition is the rivalry that occurs between companies selling similar line of products and services with the goal of achieving revenue, profit, and market share growth. Market competition helps in motivating companies to increase sales volume.

Knowing and understanding your competition is a critical step in designing   and bringing a successful marketing strategy. For a business, especially in a concentrated industry, competition is vital for achieving and maintaining competitive advantage and ultimately leading to its success.

A business organization with competition will:

  • prevent being blindsided by competitors
  • enables the proactive responses to competitive forces
  • help in improving marketing strategies
  • Identifying new opportunities to increase customer value, and
  • provide early warning to larger industry shifts.

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