3.2 Competitor Component
Competitors are companies in the same industry that sell similar products or services to
customer. Ford, Toyota, Honda, Nissan, Hyundai, and Kia all compete for automobile customers. NBC, ABC, CBS, and Fox (along with hundreds of cable channels) compute for fast-food customers' dollars. Often the difference between success and failure in business comes down to whether your company is doing a better job of satisfying customer wants and needs than the competition. Consequently, companies need to keep close track of the their competitors are doing. To do this, managers perform a competitive analysis, which involves identifying your competitors, anticipating competitors' moves, and determining competitors' strengths and weaknesses.