BUSINESS COMPETITION

Prepared by Group 2
 CONTENTS

01 definition of Business Competition 04 Importance of Business

Competition

02 types of Competitors in Business 05 Benefits and Disadvantages of

Business Competition

Eight ( 8) Major Types of Business Tips for Promoting Healthy

03 Competition 06 Business Competition
Definition of Business Competition

What does competition mean

in business?
Competition

- refers to a situation in a market in which firms or sellers independently strive for the
patronage of buyers in order to achieve a particular business objective( e.g., profits, sales
and/or market share.)
What does Business competition
mean?
Business Competition

• is the race or rivalry among business competitors that are competing in the same
niche
• purpose of competing with one another is to increase the revenue of the
business by increasing the sales and market share.
• price, quality, design, sales, location
Types of competitors in business

Direct Indirect Replacement

Competitors Competitors Competitors

• are brands or • means two or more • are brands and businesses that have
businesses that sell the businesses are targeting the the ability to completely replace
same products or same client need in the same existing organizations by producing
services to the same market but offer different new products or services that better
target audience products and services. satisfy the needs of their target
audience
Types of Business Competition

01 Brand recognition - The power your company

name has with its customer base.

02 Customer relationships - The overall

experience customers have when interacting
with your business

03 Business reputation - The

expectations customers have of your
business and its employees

04 Sales - The profit you earn from the

sale of your products and services.
Types of Business
Competition
05 Products - The tangible items you
offer your customers.

06 Price - The price you charge for

products and services.

07 Cost - The cost you pay for

products.

08 Location - Where you are

physically located or the ease at
which customers can choose your
business over others
Importance Of Business Competition
Makes the business dig deep into the actual needs, wants, and
demands of the customers and makes it more interested in
serving them better than other players.

Makes the business realize its actual strengths and weaknesses.

Makes the business focus on more than just the offering; in

marketing, branding, customer service, and customer retention.
Keeps the companies on their toes and induces a habit of
constantly innovating and improving the product.

Educates the business about the intricacies of how the usual

market works, how to position the brand, produce efficiently, and
market sell effectively. Provides customers with options to
choose from while shopping.
Benefits Of Business Competition

• Increases the demand

• Boosts innovation
• Helps business find its
competitive advantage
• Makes businesses
serve customers better
• Makes employees
more efficient
• Boosts constant
business development
Disadvantages Of Business
Competition

• Reduces the business’s market

share
• Puts pressure on business
• Employees feel pressurized
• Makes business spend
unnecessarily
• Customers get confused
Tips for promoting healthy business
competition

Understand your competition

A
B Make positive connections

C Demonstrate your uniqueness

THANK YOU