Understanding your competition is key to the success of any business. Even if your product or service fills a unique gap in the market, there are always other companies offering something similar, or there are other ways to satisfy the same customer’s need. The key when thinking about your competition is to learn what makes the customer choose one product or service over another. The different options that customers consider are usually competitors.

Competition can be either direct (competing by selling the same products) or indirect (competing for the same market). The intensity of that competition, whether direct or indirect, will affect the overall potential for success of your business. That is why it’s important to consider all types of competition when planning your business, to ensure that you have the edge over others in your industry.