Business Competitor Analysis: Who are you really competing against?

Aug 10, 2017 | Business Tips

Kevin Fouche

Business Competitor Analysis: Who are you really competing against?

Posted by Kevin Fouche, Pixel Fish Director

Kevin handles the planning, design, launch and training of every website that Pixel Fish creates. He ensures that every website is highly engaging and aligned with our client’s goals. With over 20 years of design and web industry experience to draw upon, Kevin aims to pass on his knowledge to our clients and like-minded businesses wanting to grow their online presence.

Do you know who your business is competing with? Have you looked at a Business Competitor Analysis? As Small business owners, we often get this very wrong.  There are 4 main business competitors every small business has, and it is vital you know who they are.

Business Competitor Analysis: Who are you competing against?

  1. A direct competitor
  2. A substitute
  3. D.I.Y.
  4. Apathy

1. Direct Competitor

This one is relatively straightforward and where we often give much of our attention.  If they don’t choose you, then your client can elect to buy from a direct competitor, which is another business very much like yours that sells the same product or service.

2. Substitute

This is where your client solves their problem (i.e. the problem that your business solves) with a substitute instead of a direct competitor.  This can be a major blind spot for business owners, the inability to recognise a substitute as a threat to their business.  Take coffee as an example, a direct competitor to a good barista is the other good barista across the street. Still, a substitute would be Red Bull from the convenience store nearby.  You need to understand what the substitute competitors are for your client.

3. D.I.Y.

Your client (in many cases) can ‘do it themselves. Maybe not as well as you can do it for them, but they can still get a result, electing not to buy from you but instead solve the problem on their own.  This will be a big threat to accountants in the coming years as the ATO makes it easy for people to lodge their tax returns, for example.  People can build their websites, do their marketing, train at the gym, buy a book, or Google the solution.

4. Apathy

The last one is apathy, where your client just does nothing at all and puts it off temporarily or indefinitely. For some of the products and services, the client doesn’t need to engage even if there is a good reason to do so.

Why is it important to know exactly who your business competitors are?

It is crucial because you need to know your real competition to design your marketing and sales spiel to suit.

So who is your competition?

Out of the last 10 or 20 clients you missed, work out what percentage of those clients you lost to each of the four areas of competition.  Then review how you market and sell. You may need to ask yourself are you addressing the right competitor, or do you need to change your approach?

Further Information:
10 Interactive WordPress Plugins to Bring Your Website to Life
Hidden Hacks: How to Check if Your WordPress Website Has Been Hacked
10 Tips to Optimize the Your Web Design Typography
10 Tips that Maximise Your WordPress Website Design ROI
12 Tactics to Increase WordPress Website Speed
13 WordPress Security Features that Protect Your Users
Top 10 Installing WordPress Plugins Best Practices
8 Cutting-Edge Web Design Trends to Incorporate Into Your Website

Stand out from your competition with a Pixel Fish website!

Call us today on 02 9114 9813 or email

Related Blogs

Top 10 Steps to Start a Successful Online Store in 2022

Top 10 Steps to Start a Successful Online Store in 2022

In 2022, becoming your own e-commerce retailer has never been easier. If you want an online store, it’s really quite simple to build one, secure a supplier, and start advertising. Of course, the website doesn’t exactly build itself, and you’ll still need to supply all the unique brand experience and selling points to bring in customers, but the tools are all there waiting to be used.

Top 5 Strategies on How to Price Ecommerce Products

Top 5 Strategies on How to Price Ecommerce Products

Pricing your ecommerce products is a critical decision that you must make as a business owner. However, determining the best product price is difficult. The price you set affects demand, profits margins, cash flow and the expenses your business can manage to cover.

Top 5 Highly Effective Customer Retention Strategies

Top 5 Highly Effective Customer Retention Strategies

When you’re in business, acquiring two new customers feels great. But the truth is, nothing is better than retaining an existing customer. To help you through your customer retention journey, we look at the most practical and Effective Customer Retention Strategies. 

Contact Pixel Fish

Get Started with a new Pixel Fish Website

We would love to hear about your upcoming website project

Kevin Fouché, Pixel Fish Director