consumers have a limited amount of purchasing power. What they do not spend on brand X, they will surely spend somewhere else. Even though this statement is not literally true, it is a good positioning to maintain to keep a company thinking competitively.In other words, forward-thinking company should always be apprised of its competition, both direct and indirect. A company may be a weak competitor one day, and the net day undertake a course of action that can force its rivals out of business.