January 9, 2019. Manila. Part of an investor´s Industry Analysis is looking at the Types of Competitors in the Industry. The following are Types of Competitors:
(A) Direct Competitor – a company or firm that sells the exact product or services as your company. Example: Grocery A and Grocery B.
(B) Indirect Competitor – a company or firm that sells almost the same product or services as your company. A company or firm that sells different product category and services but are in the same industry as yours. Example: A Cafe and Restaurant in the same neighborhood.
(C) Replacements or Substitutes – A company or firm that sells products or services that can be uses as a substitute for your product but in a different industry. Example: Restaurant and a Grocery Store
(D) Potential Competitor – A company or firm (Direct, Indirect, Replacement) who has no distribution in your market.
(E) Future Competitors – a company or firm that has business capabilities that will allow them to quickly take market share against your company.
(F) Compliments – A firm or Company that produces a product that can be considered an add on to your product: Example: mobile phone, it´s chip supplier, battery supplier, Headset makers, speaker maker.