Price competition | Product functions & features |
Market overcrowding | Substitute products |
Loss of market share | Disruptive innovation |
Customer churn | New competition |
Promotional spending by competitor | Quality of competing products |
Competitors with superior ratings & reviews | Employees leaving to work for competitor |
Global competition | Resource competition |
Product improvements of the competition | New products of the competition |
Service quality of the competition | Intellectual property infringement |
Knockoff products | Copycat innovations |
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 |
Pricing
Steep 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.Innovation
Innovation by a competitor can threaten a firm's entire business model.Locations
A 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.Resources
A competitor who is viewed as a more attractive employer may result in a loss of skilled resources.Promotion
A 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.Distribution
A competitor may achieve a preferred position with your distribution partners such as retailers.Intellectual Property
A competitor may secure key intellectual property that is important to current and future products.| Overview: Competitive Risk | ||
Type | ||
Definition | The potential for actions of a competitor to negatively impact your business. | |
Related Concepts | ||
