Someone always asks, “What is your competition?”
Two popular replies:
- Our competition is ABC Company.
- We have no competition.
Why is “We have no competition.” Wrong?
Answer: There is ALWAYS competition. Not just from other companies, but other solutions, and from public perception.
Competition comes from other companies and other solutions in the following generic forms:
- Rivals selling the same product or substitute products in the same space as you.
- Other companies selling other products in the same space.
- Other companies selling similar products in another space.
- Suppliers into your space, who want to expand.
- Buyers from your space, who want to expand.
- Newcomers that want to enter your space.
Some people may recognize this as from Porter’s Five Forces. You could break this down into two types: companies that are actively your competitors now, and companies that could be your competitors in the future.
To answer your active competitors now, address:
What makes you and your product different?
To answer your future competitors, address:
What are the barriers to entry?
Competition comes from public perception when the public either does not know about the problem, or they do not care about the problem. The competition is the potential buyers “do nothing.” There is always Do Nothing. If your target market will just do nothing, then you will fail. If this is truly your biggest competition, address how they will recognize they have a problem and recognize how you have the solution.
Remember, everyone has competition, including doing nothing.
