Competitive Environment

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Description of Competitive Environment. Explanation.

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Definition Competitive Environment. Description.

The Competitive Environment is the part of a company's external environment that consists of other firms trying to win customers in the same market. It is the segment of the industry that includes all immediate rivals.

Levels of Competition

With regard to competition, there are at least four levels that can be distinguished:

Product Competition. This is competition focused on the same market segment. For example: Diet Pepsi and Diet Coke.
Product Category Competition. This is between products with the same characteristics, such as various soft drinks.
Generic Competition. This is competition between products that respond to the same needs of customers, such as drinks.
Budget Competition. This competition is for the money of the customer (share of wallet), such as between food and entertainment.

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	How to Analyse your Competitors? Steps in Competitors Analysis An approach that is often used in the process of competitors analysis exist of the following four st (...)

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