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9 Types of Business Competition

 , updated on June 01, 2017
Business competition is a contest or rivalry between firms to win revenue. It is a fundamental economic force that benefits customers as firms are under pressure to constantly improve products and offer attractive prices. The following are common types of business competition.

Products & Services

The features and quality of products and services. For example, solar panels that have a higher energy conversion rate may be preferred by customers.

Customer Experience

The intangible elements of products and services such as diligent customer service at a hotel.

Price

Similar products and services typically compete intensely on price. Firms with superior products and services in the eyes of customers may be able to charge premium prices.

Cost

A producer with lower unit costs can choose to compete on price to drive competition out of the market. Alternatively, a producer with lower costs can invest in their business to create superior products and customer service. Either way, a lower unit cost tends to be a significant advantage.

Brand Awareness

Customers tend to chose products and services they know or that they recognize. As such, establishing and sustaining brand awareness is a basic type of competition.

Sales

A sales force that can close sales can be a significant competitive advantage in industries such as business-to-business services.

Location

Location based competition such as the only coffee shop at an airport.

Technologies & Standards

Competition to establish a technology or standard. For example, competition between electric and hydrogen powered cars.

Reputation

A firm's reputation in areas such as reliability, quality and sustainability.
Overview: Business Competition
Type
Definition
A contest or rivalry between firms to win revenue.
Related Concepts

Competitive Advantage

This is the complete list of articles we have written about competitive advantage.
Absolute Advantage
Bargaining Power
Barriers To Entry
Brand
Business Cluster
Business Scale
Business Strengths
Capital
Competitive Differentiation
Competitive Parity
Competitive Pressure
Cost Advantage
Cost Innovation
Cost Strategy
Critical Mass
Customer Satisfaction
Design
Digital Maturity
Distinctive Capability
Distribution
Economic Advantage
Economies Of Density
Economies Of Scale
Economies Of Scope
Experience Economy
Information Advantage
Information Asymmetry
Know-how
Market Position
Market Power
Marketability
More With Less
Network Effect
Organizational Culture
Price Leadership
Product Development
Productivity
Relational Capital
Relative Advantage
Risk Management
Strategic Advantage
Switching Barriers
Switching Costs
Trade Secrets
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