According to Nancy Pearcy “competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity.”
If you have the impression that the competition is a bad game, it not true in every contest. As an individual, when you constantly compete with yourself, you are struggling to get better. This is the same with a business owner constantly coming up with brilliant strategies to compete with the market. To better understand what market competition is, the two words will be examined first as a separate term and then as a collective term. What is the market competition?
The term market is used to describe a place where people buy and sell goods and services. A market could be a physical setting or an offline setting. If you have ever placed an order for goods or services online, what you are doing is buying from a seller. As such, the platform is not only a website but also an online market. A market is specifically created for the purpose of buying and selling, this is what qualifies a place as a market. If there is no buying and selling, then it is not a market.
Competition on the other hand means two or more people in a match to win over the other. There are different kinds of competition, football games, wrestling and so on. In competition, when one party wins, the other automatically lose. The winning party gets all the recognition and advantage of emerging as a winner
In the same vein, market competition is a situation where two or more companies constantly devise tactics and strategies to outshine others in the market. The winning party makes more profit and earns more patronage in the market. Since the market is a place for buying and selling, the winning competition remains on top of the list of customers, the company gains more recognition and has the highest leads. There are three major types of market competitors, direct, indirect, and replacement competitors
Direct competitor
A direct competitor is a company that sells the same thing you are selling and the product is targeted at the same segment of the market you are targeting. A good example of this kind of competitor is Staple and Office Depot. If you have ever been to these two companies before, you will agree that they not only sell the same thing but in fact operate in similar ways. Not until Staple acquire Office Depot did the competition reduce.
If you are a business owner, direct competition is what first comes to mind when you think of the word “competition.” it is that company within or outside your vicinity targeting the same section of the market as you.
Indirect competitors
These are companies selling the same product you are selling, targeting the same audience but using a different strategy. In most cases, the goal of an indirect competitor might not be the same as your company, their method of generating revenue also differ from yours. A good example is indirect competition between contractor companies and do-it-yourself companies.
Replacement competitors
This type of market does not necessarily sell the same product as you do but can also be competing for the same section of the market as you. A good example is your restaurant business in a locality where there are bars and cinemas. Your target audience can choose to go to the bar or cinema instead of spending their money in your restaurant.
If you are a business owner yet to get on Bixex, you are missing out. To get started with Bixex, simply download the app on Google or Apple Play Store or visit www.bixex.com
Bixex is simple, safe, and secure.