Who is your competition?

Are you keeping your eye on the wrong thing?

It’s an interesting question and may be less obvious than it seems.

If you open a pizza shop you might think that your primary competition is other pizza shops.

Your average customer doesn’t think that way. They are likely thinking they want a change from cooking and have a budget for fast food. Do they want burgers, fish and chips, pizza, chicken, Thai food, or something else. This decision will take into account proximity, waiting times, choice, etc. too.

After the decision to buy fast food is made, then they might compare pizza choices.

Get it yet? It’s all about how your customers make a choice.

If you make biofuel you are competing with existing fuels that can be used with existing cars.

If you make a green generation technology you are competing with the existing electricity bill that customers pay. Everyone likes the idea till they have to pay.

If you make an energy drink you are competing with all the other drinks in the fridge at the shop as well as with cafes.

In recruitment you are competing with referrals, an internal recruitment process, and people walking in to a company looking for a job.

Have a think about the substitutes and alternatives for your product. These are your biggest source of competition.