> Services > Funding and Resources for Small Business > Is Small Business For You? > How well do you know your competitors?
How well do you know your competitors?
In simple terms, yourcompetitors can be identified as those companies that offer similar products or services to the same customers at similar prices. These can be either direct or indirect competitors. As an example, Kodak identifies Fuji as a major or direct competitor for camera products. However, they also face competition from companies that offer different products, but ones that supply the same service or capability, i.e. indirect competitors which are companies like Nokia who offer mobile phones with digital cameras as an integrated feature.
Identifying who your competitors are and understanding the approach they take in the market can help you to develop and sustain a competitive advantage.
The following questions can assist you in identifying and understanding your competitors:
Can you make a list of your top five or ten direct competitors? Can you identify any indirect competitors to your product or service? Do you know what your competitors are doing, i.e. what are the benefits of their products and how are they marketed? What are your competitors' strengths and weaknesses? What do consumers think about your competitors' products? How are you going to position yourself in comparison to your competitors? Would it be meeting the competition? beating the competition? countering the competition? Are you competing on price, product, quality or another point of difference?
Can you make a list of your top five or ten direct competitors?