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Competition Analysis

In today’s world competition is a jealousy between rival companies, peoples and even in the animals for region and resources. It generally occurs whenever two companies having same target which they want to achieve which cannot be shared. Competition mostly occurs between living creatures that are living in the same environment.

In business, the term competition will normally show the market condition for two or more competitive firms or organizations. Competition is also useful for the companies to increase their sales of goods and services in the market. Accordingly, competition will increase the development by commercial organization of products, goods, services and technology. As if there is heavy competition in the market, the price of that product is less than its original value and the less competitive market always allows the high prices of the products.

There are three types of competition in the market:

1: Direct competition: It includes the competition on the brands of the two competitive companies in which they ads some features or may introduces some new product only to get lead from its rival company in another way they compete each other

2: Indirect or substitute competition: In this competition products available in the market are similar substitute of each other like jam is the substitute of butter.

3: Budget competition: In this type of competition it is not necessary that it occurs only in two or more firms, it presents the idea that what is the cost of the products available in the market for being purchased by consumers regarding their budget.

In the competitors, analysis advertising and promoting is a judgment and have some advantages and disadvantages. Competition analysis for business corporate is the most important tool for understanding the present market condition. Many firms generally prefer the traditional steps for analyzing the market and many prefer new strategies.

Competition analysis includes getting the equivalent information or analysis on your competitors, customers and analyzes the main factors of success of your firm. There are many new companies in the market which will also led to the competition situation by their product but if you have good analysis of market strategies there is no need to worry.


 

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