competitor's Analysis part 2

A market can be available in a wide variety of places. And this could determine the demand of the product or service that specific market offers to people. Like the level of income: The location where the competitor is selling their product could be a society that has a high level of income meaning is very capable of affording high standard goods and services. If most of the average consumer in that location have a high income, it is likely that your competitor will sell as much of their product there. And if only a few of the average consumer have a very high income then the client might sell very little.

The legislations: They could be a lack of regulation on businesses in that area meaning that they will be encourage to sell as much as possible in that specific location. Meaning that they could develop mean of reaching as much people as possible. But this could also be too much regulation making businesses less attacked to that area. lack of competition is another part. If the competitor has arrived in a place before other competitor has arrived. this could give them the possibility to establish themselves as a monopoly in that area. Since they will have virtually no competitor at the start so one of the reason why some companies have a monopoly could simply be because they have reached that market first.

But at the same time if there is too many competitor in an area, they might not choose to promote their product or service there either. Another point is accessibility . This is mostly because the competitor is selling a product and not a service even if it could be addressed to a service-based business as well it is mostly about providing a product. And it could be linked to things such as the shipping cost and other means of transportation form where the product gets made to where the product gets sold. even cultural norms. A product could be widely in demand simply because of its popularity. some product or services sell well in some areas than in other areas because it might have a social link with the people of that specific location.

If that is that case, then the product could sell for a very long time without any upgrade since it is consumed not necessary as a need but as something cultural. On the other hand the opposite could also happen if the product that is been sold is culturally unacceptable then the demand of that product could also be very rare. All those factor could be the reason why and organization will decide to market or not to market their product in a specific area.

The cost of the product is one of the most important subject to now here. One thing that you should always remember is that when there is a high demand of a product or service the price of it will increase and when there is a low demand of it then the price will decrease but this could change. And one of the reason why this could change could be due to the previously discussed once. For example since the reason for selling a product in the first place is for returning profit the competitor will have to make sure that if there are selling their product in an area where there is not a lot of demand for their product or an are where there demand append very rarely they will make the price very high each time that demand will

occurs since the aim is to maximize profit at each sale. So they will want each sale to make as much return as possible. This will likely occur in an area where there is a very short-term demand of the product. Another previous factor could be the regulation. Affording the cost of regulation could be another reason for this the client will make the price of the product or service that they are offering somewhat high so that they could have as much money from their sale to cover the cost of the regulation in that specific area in which they are selling. Another reason for the increase in price of the product and service could be the cost of supply as previously mention the supply of a product from where it is made to where it is sold could be very costly due to the difficulty it will require to transport the product. And for that reason they will have to make the price very high for every sale they make.

The promotion of the product could also play a significant role in the demand and availability of the product. This is mostly linked to how the competitor choose to promote their service or product. Either they will market it themselves or they will market it through an influential figure. Making the marketing themselves could be costly for the organisation unless they have established a monopoly on the market. In this case their product is already widely popular so they will not spend as much time on marketing in order to make their product popular. Since it's already a popular product. And they could also choose to have others market the promotion for them.

This could be influencers that have a very huge fan base therefore getting them to promote their product to their fan base could increase the likelihood of that product or service to be purchase. This could also be because it has something that they will be interested in as the company wants as much demand as possible, they will look for the way to target as much people as possible. They could also be marketing the product in several ways but your main goal here is to see how they are promoting the product to the client. There could be ways in which they will be getting client to their product or service. One way will be by providing the client with the product as something that thy are looking for.

Another way will be to convince them that the product is something that they need to buy. Both ways could be very mingled together, so it is worth paying very high attention to it. look at who they are targeting and how. The way the largest competitor operate could be a way for you

to analyse what could be the risk that you could occur when operating yourself. One thing that you should know is that small businesses and start-ups are most likely to fail when competing. Because of the way they operate. Meanwhile big businesses are less likely to fall since they operate in a different way. And while there are lots of differences between a big enterprise and a small one in term of how the operate, meaning that small businesses cannot operate like large business and large business cannot operate as small business. The observation of big enterprise operations can help small business and the way they operate.

Again this is not copying the way big business operate but looking at how the operate and using it to find any potential risk that you could face as a small enterprise when operating. One example is that fact that huge companies are always looking for ways to expand. And small enterprise might not notice this. And what will happen is that the small business will figure out a way of providing extra value in the market and decide to enter in the market as a start-up fully on that newly formed idea. But huge companies will have already figure out that extra value since they are constantly analysing the market to identify ways in which they can expand. And what this will lead to is the big business will have the money

resources and ways of affording this new value in the market more efficiently since they will have more possibility, and this will make the small business run out of business. Since their idea will already be taken by the dominant companies. The risk here is that big businesses that control most of the market are always looking for way to innovate so your idea to innovate as a small business could already be taken by one of them.