What is Competition? Two Meanings!
Everyone knows what competition is approximately. But actually the concept of competition can have TWO meanings
A. The Extent of Rivalry
(Competitive Struggle) in a market: how strong is the battle in a market for the favor of the customers? In other words, how intense is the competition? A typical approach for this is Porter's 5 Forces Model
B. All individual competitors together
: the collective name for all the competitors of a company.
Because of these two different meanings, a competition analysis
normally consists of 2 components:
1. An analysis of the intensity of the competitive rivalry in a market, and
2. An analysis of the behavior of the individual competitors. This is known as competitor analysis.