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|
|Definition||The potential for actions of a competitor to negatively impact your business.|
|Related Concepts||Price WarInnovationMarketing EconomicsRisk ManagementRisk MitigationCompetitive AdvantageEconomic Moat|