A business will want to sell its products or services to as many customers as possible. In order to do this it must compete against other businesses. Only a monopoly will have no competitors. Competitors to a business could be local, national or international. In the past most businesses would only have local competitors, but the use of new technology such as the Internet has made it possible for businesses around the world to compete for customers who have internet access. It is important that a business knows its competitors so that it can compete effectively.
Businesses may compete on price; this is known as price competition. They may also compete on factors other than price such as quality or after-sales service; this is known as non-price competition.
You need to look at look at a number of areas that are important for a business if they are to compete effectively: