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Figuring Out Who Your Competitors Really Are

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I like to organise competitors into three broad groups, and I suggest you try to do so too:

 Head-to-head competitors provide exactly the same service or exactly the same product as you do.

 ‘Sometimes’ competitors provide a slightly different service or product, or are in a different location.

 Left-field competitors don’t normally compete with you but, if circumstances were to change, could possibly do so.

When you’re thinking about the competition for your proposed business, don’t be too literal — think about where both your business and its industry are headed. For example, a watchmaker repairing and selling watches 30 years ago would have probably thought that the main competition was other watchmakers. The idea that the mobile phone could almost completely annihilate this industry would seem a long shot.

Also, don’t be hesitant to compare your business against big-time competitors such as supermarket chains or large franchises. While you may find it hard to imagine how your fledgling business could ever compete, the mass-market nature of these competitors often leaves niches that are underserviced, providing opportunities for smaller players.

Small Business for Dummies

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