Enterprises are constantly striving to attract customers' attention. Competition never sleeps, what's more, it comes up with new ways to reach potential consumers. When analyzing the activities of other companies, it is necessary to look a little wider today, that is also to products substitutable to ours. What exactly is substitution competition characterized by?
What is substitutive competition?
Substitutive competition is all enterprises that sell products or offer services different from ours, but meeting the same or similar needs. Which means that they are competing for the same market satisfying the same need but with different goods. Examples include companies that manufacture disposable razors and electric razors.
The same applies to cafes, coffee producers and producers of coffee machines, for which the common denominator is the need to drink coffee. It is also the same with a customer who wants to buy a birthday present. On one street, he has a choice of jewelry, clothing or footwear. All these stores are competing for the same customer. Substitution competition is also called indirect competition and it is of great importance in competition analysis.
However, we cannot forget to select direct competition, i.e. the one that offers the same products. When analyzing competition, it is also worth categorizing substitutes and potential competition. Thanks to such activities, you are able to fully distinguish yourself from all competition, not only its parts.
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How to identify indirect competition?
For the optimization of our search engines and website positioning substitutional competition is of great importance. Why? Because all these companies will use the same keywords, which will mean that after typing in Google: instant coffee, your company producing coffee will not necessarily appear, but the manufacturer of the espresso machine. Therefore, the knowledge of indirect competition is the key to get to your target group as well as expand it.
If you know that people who buy a gift choose between your brand and other stores, you can create a campaign perfectly aimed at distinguishing you from this particular competition. An experienced SEO agency will help you in all of the above activities.
