How does the level of competition influence a business's strategy?

The level of competition greatly influences a business's strategy. High competition can lead to a focus on differentiation and creating unique value propositions. It may also push a business to improve its efficiency, reduce costs, and innovate. On the other hand, low competition might allow a business to focus more on growth and market penetration. However, businesses must always be aware of the threat of new competitors and changes in the market.

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Using competitive analysis to find a market advantage – assess the following characteristics of the competitive landscape: market share, strengths and weaknesses, your window of opportunity to enter the market, the importance of your target market to your competitors, limitations that may prevent you from entering the market and indirect competitors who may impact your success. Make sure to differentiate your competitive analysis by industry, taking into consideration the level of competition, the threat of new competitors or services, and the effect of suppliers and customers on price.

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Competitive Landscape Analysis (Part 2)

Evaluate your position in the market and familiarize how you compare against competitors to do more of the right things. Use this Competitive Landscap...

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