Product functions & features
Loss of market share
Promotional spending by competitor
Quality of competing products
Competitors with superior ratings & reviews
Employees leaving to work for competitor
Product improvements of the competition
New products of the competition
Service quality of the competition
Intellectual property infringement
Relationships of the competition
Sales prowess of the competition
Marketing prowess of the competition
Partners of the competition
Customer loyalty of the competition
Brand strength of the competition
Operational capabilities of the competition
Competitors with lower costs
Competitors with greater scale
Competitors with greater selection & variety
PricingSteep discounts by a competitor can be a significant threat to a business, particularly a business that has a higher cost than the competition. Discounts may be driven by excess inventory due to supply/demand issues or as a aggressive pricing strategy that sparks a price war.
InnovationInnovation by a competitor can threaten a firm's entire business model.
LocationsA competitor who opens a location next to yours or who secures a better location. In some cases, competition close by isn't a bad thing as it can attract more customer traffic.
ResourcesA competitor who is viewed as a more attractive employer may result in a loss of skilled resources.
PromotionA competitor's promotion may attract your customers away. In some cases, a competitor's promotion may directly or indirectly paint your brand or products in a negative light.
DistributionA competitor may achieve a preferred position with your distribution partners such as retailers.
Intellectual PropertyA competitor may secure key intellectual property that is important to current and future products.
|Overview: Competitive Risk|
The potential for actions of a competitor to negatively impact your business.