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5 Types of Competitor

 , updated on September 28, 2017
A competitor is a firm that has potential to take your customers. The products, positioning, distribution, promotion, reputation, brand identity, business model, costs and pricing of competitors is a key concern of strategic planning and operations for many firms. The following are the basic types of competitor.

Direct

A firm that sells the same products and services as you in the same markets.

Indirect

A firm that sells different categories of products and services but are in the same industry and same markets. For example, a cafe and restaurant in the same city are indirect competitors.

Replacement

A firm that sells products and services that are in a different industry that could be used as a substitute for your products. For example, a restaurant and a supermarket in the same city.

Potential

A direct, indirect or replacement competitor that currently has no distribution in your markets. For example, an organic cosmetics company that is popular in Europe but that has no sales capabilities in the United States represents a potential competitor for American cosmetic firms.

Future

A firm that has business capabilities that would allow them to quickly take market share if they entered your markets. For example, a large technology company may be perceived as a competitor of smaller technology firms even if they haven't entered their market yet.
Overview: Competitor
Type
Definition
A firm that has potential to take your customers.
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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Competitive Advantage

A few sources of competitive advantage for businesses.

Market Position

The primary types of market position.

Experience Economy

A definition of experience economy with examples.

Competitive Position

A definition of competitive position with examples.

Switching Costs

A definition of switching costs with examples.

Trade Secrets

A definition of trade secret with examples.

Relative Advantage

A definition of relative advantage with examples.

Comparative Advantage

An overview of comparative advantage with examples and comparisons.

Competitive Threat

The common types of competitive threat.

Market Research

A systematic investigation of market conditions including customers and the competition.

Contextual Inquiry

A definition of contextual inquiry with several examples.

Data-Driven Marketing

A definition of data-driven marketing with examples.

Market Positioning

A list of common market positioning strategies.

Test Marketing

A definition of test marketing with examples.

Product Involvement

The common types of product involvement.

Latent Need

A definition of latent need with examples.

Market Intelligence

A definition of market intelligence with examples.

Organizational Intelligence

A definition of organizational intelligence with examples.
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