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- DictionaryCom·pet·i·tor/kəmˈpedədər/
noun
- 1. a person who takes part in an athletic contest: "two competitors were banned for taking drugs"
People also ask
What is a competitor?
What does competition mean in business?
What is a direct competitor?
What is a local competitor?
Competitor definition: a person, team, company, etc., that competes; rival.. See examples of COMPETITOR used in a sentence.
Definition of competitor noun in Oxford Advanced American Dictionary. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more.
- Define Competitor in Simple Terms
- What Does Competition Mean in Finance?
- Types of Competitors
- How to Analyze Competitor Performance
- Competitor Strategies
- Responding to Competitors
- Investors and Direct Competitors
- Example of Competition
- Conclusion
A competitor is a rival business whose activities have the potential to reduce another business's share of the market. A competitor who sells the same or a nearly-identical product or service is a "direct" competitor, such as Pepsi and Coca-Cola. A competitor who sells a different product or service which fulfills the same need is called an "indire...
Competition is the cause of two things that make economies flourish: innovation and affordability. To retain market share, competitors must either differentiate their offerings through innovation and brand perception or through lower prices. They challenge each other by offering improved services, better pricing, or enhanced products, all with the ...
Direct Competitors
Direct competitors are companies that offer similar products or services to the same target market, and they compete directly for the same customer base, often resulting in head-to-head competition in terms of pricing, features, and marketing strategies.
Indirect Competitors
Indirect competitors are businesses that may not offer identical products or services but fulfill similar customer needs or desires, creating a substitute or alternative option for consumers. They indirectly impact the demand and market share of the primary company's offerings.
Local Competitors
Local competitors are businesses or entities that operate within the same geographical area or region. Often, these businesses target a similar local clientele and deal with challenges unique to their locale, such as local regulations, culture, or consumer preferences. The competitive landscape at a local level can be fierce, especially in densely populated areas, where multiple businesses might be targeting a limited consumer base. On the bright side, local competitors often have a better un...
Compare Financial Metrics
Key indicators like revenue growth, profit margins, return on equity, and debt levels offer insight into a company's financial health and its operational efficiency. By benchmarking these metrics against industry averages and direct competitors, businesses can gauge their standing in the market and identify areas needing improvement. A deeper dive into these metrics can also unveil operational strategies, potential vulnerabilities, and opportunities that competitors might be overlooking. Such...
Analyze Market Share
By assessing a competitor's market share, businesses can understand their relative position and the threat posed by other players. A declining market share might indicate dwindling customer loyalty, while a growing share could signal effective marketing strategies or product superiority. Moreover, shifts in market share can predict future industry trends, providing proactive companies with a chance to adapt and innovate before they find themselves on the back foot.
Assess Competitive Advantage
Every company has its strengths—something that sets it apart from its competitors. By identifying these unique advantages, whether it's a patented technology, an unparalleled distribution network, or exceptional customer service, businesses can gain insights into why customers might choose one company over another. It's equally crucial for businesses to recognize their own competitive advantages. Harnessing these strengths while addressing weaknesses ensures a stronger position in the market,...
Product and Service Offerings
Understanding the range and depth of a competitor's product or service offerings can shed light on their market strategy and target audience. By evaluating the features, quality, and user reviews of these offerings, companies can identify gaps in their products or potential areas for improvement, ensuring they remain competitive and responsive to market demands.
Pricing Strategies
Price can be a significant factor influencing consumer choices. Some competitors might adopt a premium pricing strategy, positioning their brand as a luxury or high-quality option. Others might focus on cost leadership, aiming to provide value-driven solutions at competitive prices. By understanding competitors' pricing strategies and the rationale behind them, businesses can adjust their pricing models, offer promotions, or bundle services, ensuring they provide compelling value propositions...
Marketing and Advertising Approaches
How a company markets itself can say a lot about its brand identity, target audience, and strategic goals. By analyzing competitors' marketing campaigns, advertising channels, and promotional tactics, businesses can gain insights into market trends and evolving consumer preferences. Such an understanding can guide companies in crafting effective marketing strategies, ensuring they remain relevant and resonate with their target demographic.
Competitive Positioning
In the face of competition, it's essential for businesses to reinforce their unique value proposition. By emphasizing what sets them apart—whether it's quality, innovation, service, or price—companies can ensure they remain top-of-mind for consumers. Clear and consistent competitive positioning not only builds brand loyalty but also acts as a barrier against competitors trying to encroach on a company's market share.
Strategic Alliances and Partnerships
By forming strategic alliances or partnerships, companies can pool resources, share risks, and access new markets or technologies. Such collaborations can provide a competitive edge, enabling companies to offer something truly unique in the market. However, it's crucial to ensure that these partnerships are symbiotic, with clear terms and shared goals, to maximize their potential benefits.
Innovation and R&D Initiatives
In the ever-evolving business landscape, innovation is key to staying ahead of competitors. Investing in research and development (R&D) ensures that companies remain at the forefront of industry advancements, ready to introduce groundbreaking products or services. Fostering a culture of innovation and continually seeking improvements allow businesses to ensure they're not just reacting to competitors but setting the pace in their industry.
Investors will often use direct competitors to compare and contrast financial statementsand ratios. Creating an analysis of an industry by examining the ratios of a group of competitors is called financial benchmarkingand can help an investor detect outliers who may be over or underpriced.
Starbucks is an example of a competitor that gained market share by differentiating itself through brand perception, rather than on price. Generic breakfast cereals that are similar, cheaper alternatives to larger-brand breakfast cereals are an example of a competitor differentiating themselves with lower pricing. Competitors are one of the 5 C's i...
Competitors are rival businesses whose activities have the potential to reduce another business's share of the market. Direct and indirect competitors offer diverse approaches to vie for market share. Local competitors encounter distinct challenges and opportunities within their geographic regions, while global competitors leverage vast resources a...
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competitor meaning: a person, team, or company that is competing with others: . Learn more.
5 days ago · A company's competitors are companies who are trying to sell similar goods or services to the same people. The bank isn't performing as well as some of its competitors. A competitor is a person who takes part in a competition or contest. One of the oldest competitors won the individual silver medal.
competitor meaning, definition, what is competitor: a person, team, company etc that is comp...: Learn more.
a person or an organization that competes against others, especially in business. We produce cheaper goods than our competitors. The company is outperforming its main competitors in the US market. competitor to something They are set to become formidable competitors to American companies.
