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Competition is the process of winning business in a crowded market. It is a fundamental force of economics that makes things more efficient, higher quality and cheaper. Without it, economic and technological progress would slow or stop. The following are basic types of competition.
PricePrice is perhaps the most common form of competition as products that fail to stand out in the market can only compete on price.PromotionAds and other types of promotion that help products to stand out as recognizable, high quality or unique. In many cases, an advertisement does nothing but associate a product with a positive emotion or idea.
NicheServing a small market with unique preferences and needs.PositioningDeveloping products that fit a unique slot on the market such as the only black, unsweetened organic coffee beverage on the shelves of convenience stores.LocationConvenient locations. In some cases, prime locations such as luxury shopping areas also help as they can make a brand seem luxurious.
SalesSkilled salespeople.TechnologySuperior technology in areas such as products, operations or marketing.CostThe ability to produce at the lowest cost. In some industries, cost is the only competitive advantage possible as price is set by the market and customers see no difference between products.
FeaturesProducts with superior features such as an unusually safe car.Customer ExperienceAn overall experience that customers prefer such as a restaurant with a pleasant ambiance, tasty food and diligent staff.ValuesValues that customers identify with such as sustainability.InnovationInventive thinking that leaps beyond the current state of the art.
RiskThe ability to navigate risk more successfully than the competition.Figure Of Merit Competing on a measurable aspect of a product that customers value such as the efficiency of solar panels.Time to MarketBeing the first to market with an anticipated product or feature.SustainabilityProducts that don't harm the environment over their full lifecycle.
DistributionAdvantages in getting the product to customers such as strong sales partners.CustomizationAllowing customers to customize products and services.ReputationIn many industries, reputation is a primary competitive factor. For example, people want investment advice from reputable sources.Social StatusSocial signals such as a fashion designer who has plenty of celebrity friends and clients.ScarcityOffering something nobody else can. For example, a railway with a monopoly.SpeedThe ability to execute a service quickly.ExperienceA list of accomplishments such as a consultancy with an established history with major clients.ScaleThe ability to produce at scale generally lowers unit cost and allows a firm to serve large markets and customers.ScopeOffering a broad range of products that compliment each other in some way.Art & DesignIntangible qualities that capture the imagination of customers such as aesthetics.Time & PlaceBeing in the right place at the right time such as an ice cream vendor at a parade on a hot day.ImpermanenceProducing things that feel once in a lifetime such as music festivals that are never the same twice. QualityProducts, services and experiences that are superior in the eyes of customers such as a camera that is impossible to break or dessert with a remarkably soft texture. RelationshipsPersonal or brand relationships with customers. LegacyAn interesting history associated with a firm that gives it a strong presence in a market. StorytellingCommunicating your value in a compelling way using storytelling techniques. AwarenessCustomers tend to prefer products they have heard about and may avoid the unknown. VisionA firm that paints an inspiring picture of its future or the future in general.
Competition
This is the complete list of articles we have written about competition.
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