NATURE OF COMPETITION AND IDENTIFICATION OF AN ORGANIZATIONS COMPETITORS
Competition is the process of active rivalry between the sellers of a particular product as they seek to win and retain buyer demand for their offerings. The operational definition of competition, however, hinges upon the meaning of ‘a particular product’.
The identification of an organization’s competitors may not be as simple or as obvious as it might at first sight appear. The most obvious competitors are those which offer identical products or services to the same customers. However, substitute products and services highlight the nature of indirect competition which must also be taken into account. Five levels of competition have been suggested: direct competition, close competition, products of a similar nature, substitute products and indirect competition.