2 Answers | Add Yours
It is important to learn about the competition in the area where you intend to locate a business so that you can have some idea as to whether there is enough space left in the market for you. If you want to start a high-end clothing store, for example, it makes a great deal of sense to find out if there are other such stores in the area. If there are already such stores, you need to find out how popular they are among potential customers. If you try to push your way into a market that is already saturated with your product, you are likely to have a hard time. By contrast, if you try to enter an under-served market, or one in which potential rivals have serious flaws, you are more likely to succeed.
Businesses need to have a customer base to succeed. That customer base has to be shared with competitors. Therefore, it is important to know how strong the competition is in order to determine if there is likely to be enough of the customer base left over for you as you start your business.
We’ve answered 319,210 questions. We can answer yours, too.Ask a question