Direct competition is competition from a business that makes most of its money selling the same or similar products or services as another business. Indirect competition is competition by a business that makes only a small amount of money selling the same or similar products or services as another business.
Analyzing the strengths and weaknesses of your competition will help you figure out what you can do to get customers to buy from your business. Analyze your competition using the following criteria: Price, location, facility, strengths, weakness, and strategy (how will you attract customers?) and post one direct and one indirect competitor analysis and respond to two of your classmates postings.
Analyzing the strengths and weaknesses of your competition will help you figure out what you can do to get customers to buy from your business. Analyze your competition using the following criteria: Price, location, facility, strengths, weakness, and strategy (how will you attract customers?) and post one direct and one indirect competitor analysis and respond to two of your classmates postings.
55 comments:
There are going to be businesses that are selling the same products and they are going to be having the same deals at times, and that is direct competition, and really you just want to make a better deal or you have customers that only will come to you. i also could have someone sell the same products but they could have really low prices or could sell it for less, that is indirect compitition, and you want to make your prices as low as you can go with out making them so low that you cant pay for rent, insurance, things that you need to pay off.
my main and most direct competition would be Lancair international, who sell simmilar high preformance aircraft. and my indirect competition would be any, and all companies that sell civil-aircraft.
The price of my business is probably higher then most salons around here. With that being said, it is also one of the only "higher class" salons in the area. It has no walk-ins and higher priced cuts/colors but the peopel who are targeted will pay the price because it is how society works.
A direct competition for my business would be Gander Mountain because they are much larger and are a retailer. They make lots of money selling products identical to my own. An indirect competition for my business would be a local hunting store called McLain's that sells the same products as I would. Although they do not profit all that largely from it, they do it as a family run business and because it is something they enjoy. To attract my costumers i would offer affordable prices that would both make me happy and them to, and also offer an inviting and welcoming enviroment, which would make them choose my business over my competitions.
My direct competition would be Outback Steak House, Russells Steak House, and Texas Roadhouse because they all sell the same type of stuff as my business. My indirect competition would be any other restaurants and fast food places that offer food at prices that would compare to mine and would be able to take away from my business.
shayna, you did an amazing job on writing this, its like you understand it, your business seems beautiful
bryan, your business seems very interesting!
My central location, reasonable prices, and large facility give my business an advantage over the competition, many horse farms in the area do not provide all the services people want and need like my farm will. Because my business will provide more of what people are looking for it will give me strength over my competition. A direct competitor of mine would be If Only Farm , who provides all the same services and products as well as holds horse shows. An indirect competitor would be Huntervale Farm, who even though provides most of the same services does it on a smaller scale.
For my direct competition, it would be large factories producing baked goods to sell into other stores such as grocery stores or gas stations. My indirect factories would be people making their own baked goods in their own homes instead of buying them from my business.
Rachel
you business sounds very good and I think that you have a definate market because there are no real bakeries around here to serve good quality food.
Shayna
I think you have effectivly found your competition and if you can focus more on hunting in a intimate store unlike Gander Mountian and have more of a selection that the other one, you should be able to fill a definate need in this area.
Chelsey,
You did a really good job identifying who your competition would be!=]
Rachel,
You did a really nice job identifying you target market, you make very good points!=]
If I started by business in the Tri-Cities area, competition wouldn't be much of a problem. Fat Cat books would be my only direct competition, and with all modesty, I could easily sweep them away if needed. Their location is inconvinient, their building shabby, their gamespace small, and their regular shopkeep is rude. Plus, they also focus a lot on selling comics. My business caters directly to gamers, so I could steal them from Fat Cat easily.
Indirect competition is limited to Centerfield Cards and Comics and Family Hobbies and Crafts. I'm not very worried about those. They focus on comics and models, respectively, and their gaming sections are just extra areas of business for them. Centerfield has regular small tournaments, by they have almost no prize support, and I could steal those players by offering better incentives to play.
Good stratagey Bill, Family Hobbies & Crafts usualy has a pretty small turn out any way.
To Rachel:
Baked goods factories will always be at a disadvantage to your kind of business, because they can never offer food as fresh as yours. A lot of people respect that, and it will make gaining customers a lot easier.
There is defintaly a lot of direct copetition in my business field. The direct competition would be any other personal gyms close to mine. Running a gym fitness center, there are a lot of places that sell similar equipment for people to buy for their home. These are the indirect competitions. Dicks sporting goods is one example. As long as there aren't many direct competitions in the area, which is what i am hoping, then the numbers at my gym should be fairly high. The indirect competition isn't something to worry about quite as much.
tullys would be my direct compition int the area. they have the same ideas as i do when it comes to having every sports game on at the same time. my in direct would be the outback they have simular food ideas and have some TVs with a few games on at a time.
To Brian:
The food industry is one of the hardest ones to break into. The fact that you are challenging four very good restuarants doesn't help any. You'll need a good amount of backup cash, because you'll probably have a longer time before you start making a profit than the rest of us.
My direct competition would be factories that make hair dye in the box. My indirect would be any other small salons in the area that offer the same services. I will make my business better wiht special offers and different services.
Shayna,
i think you have found two good examples of direct and indirect competition. But don't forget about other competition from places like Bass Pro Shop and Dick's Sporting Goods as well.
Price competition will occur in my business. Hair salons all over are charge different prices but my goal as a salon owner is to make sure that people are attracted to my prices. I plan to win over these customers by charging prices so that most people will be able to afford my prices i also plan on selling products to my cutomers so that they will be able to maintain their beautiful hair at home i will mark things down as low as i can so that people can afford it but at the same time i will make a profit and pay all my expenses.JC Penny's hair salon would be indirect competition because they are a business within another business most of JC Pennys profit comes fro the store itseld. Cost Cutters would be a direct competition because they are there own business and they sell the same products and sell the same services as i would. I would attract customers in a clssier way then they do also.
Carrie,
Your business sounds good. You brought out the competition well and I'm pretty sure your business will do better than both competitions due to your great advantages.
Rachel,
Although you may have some competition, you have a good handel on things.
Chelsey,
It looks like you know who your competition is. Also you know how to deal with them.
Ryan,
Im sure your business will do great. Especailly if you have all of the necessary equipment and keep eveything sanitary.
Fred,
terrorist attacks could be and issue to your aircrafts if you are flying anyone important or have anythin valuable on the aircraft.
Fred,
terrorist attacks could be and issue to your aircrafts if you are flying anyone important or have anythin valuable on the aircraft.
Fred,
Good job identifying your direct and indirect competition up top=)
Ryan
sounds like your business will be a success. good job identifying your competition.
this class has too much work!!!
carrie keep up the good work
matt sweet stuff you got going
Ryan how could that matter(if I was flying any one important, theyre single seaters for the most part)? what would a terrorist want with one of my aircraft? there too expensive for a terrorist to buy with out any MAJOR financing
My competiters will be other bars and Whoopy.
Ryan do you mean they would attack the aircraft??(possibly??)
My competition in my marketing will be other masons and carpenters
i will have to set my buisness wide spread around the county
ill set my prices cheap but not too cheap
i will advertise my work by showing my customers pictures of my previous jobs
i will also have a sign on both sides of my truck so at a gas station i will hopefully get someone
Dan, thats funny. I think there may be a few people who are compeating with each other in this class.
dan thats some competition right there you better be careful
Fred
what is that saposed to mean?
yeah dan look uot for matt he might beat you with his dressed up government food. lol.
what is waht supposed to mean??
Shayna
I would definatly go to your place, Gander Mountain is too expensive, and Bass Pro Shops is too far away.
if your refering to "thats funny..." I just think its interesting that there are people in this room that hav others in the same room as their possible competition, thats all.
I would go to Matt's place even though I have my own, he might even give me a discount. Hahaha
I might go to matt's once in na while when im passing through on business.
hey matt mind if I land on your roof??
Fred;
Tell u what I would!
good ideas chelsey
good stuff kaity
Shayna,
I think that with your business and what you are trying to do, you will be successful. You are gonna have the "regulars" come in and stop at your store and you will have "pass-throughs" who just come in and look. What you are selling provides a small town shop which some people prefer rather then Gander Mountain. People will start recognizing the products and eventually you will become popular to the town folk. It will be successful if the right people are reached.
:]
Caaarrie,
I think you have a good idea going. People have lost touch in the beauty of horses. I think people will enjoy coming to your farm. I know I would. I don't think your competition will hurt you, I think it will help you. If you have better deals and get better reviews, you will get more customers.
:]
My most direct competition would have to be the Mansion Audio Production Facility in Binghamton, NY. They have a very convincing sales pitch, saying, “Our focus is your album and our production. To keep that focus, we choose to only work on projects that we can lock out a good amount of time with.” Their studio is a great location, right on main street and is “operated out of a 140-year-old Victorian mansion that offers you not only living quarters but all the luxuries of home as well.” They also have had much experience, which they show on their home page of all the albums they have produced. Though they seem like good competition, much of what they have is what I have already wanted to incorporate into my business as well. It doesn’t seem like my business would really have any indirect competition, unless the stores that sell albums count but in any case they would be helpful for my business in getting my artists’ names out there.
brian,
don't worry too much about your indirect competition. it sounds like you've got them beat. Fast food cant possibly compare to yours if it's the same price, especially with everyone thinking about actually trying to be healthy for a change.
bill,
wouldn't lans center also be your competition (don't know if i spelled that right)? i've heard a lot of good things about it and its gaming.
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