another mistake managers may make when analyzing the competition is to underestimate potential competitors' capabilities. When this happens, managers don't take the steps they should to continue to improve their products or services. the result can be significant decreases in both market share and profits. For nearly a decade, traditional phone companies ignored the threat to their business from VoIP (Voice over Internet Protocol). Early on, for example, software products like Cool Talk,Internet Phone, and Web phone made it possible to make inexpensive long-distance phone calls using VoIP. the sound was only as good as AM radio, but people who were used to poor-quality sound on their cell phones didn't care because the calls were so much cheaper.