Competition

Competition refers to an entity that produces similar products or services as yours and thus have the potential of hapmering your cutomer base. Competition may include direct or indirect competition. 

Direct competition refers to the same kind of products or services offered by different sellers. Whereas Indirect competition refers to the different kinds of products or services that satisfy the same requirement.

Competition analysis

ROLE OF COMPETITION ANALYSIS

• To help management understand their competitive advantages/disadvantages relative to competitors by generating understanding of competitors’ past, present (and most importantly) future strategies

• To provide an informed basis to develop strategies to achieve competitive advantage in the future

• To help forecast the returns that may be made from future investments (e.g. how will competitors respond to a new product or pricing strategy?)


Competitors of Maggi

Maggi pazzta is a new category added to the brand maggi. Maggi pazzta, faces direct competition from Sunfeast Pasta, which offers a wide variety of pasta and indirect competition from ready to eat snacks like Top Ramen, Wai Wai, Yipee Noodles, Ching's Noodles. It may also face indirect competition from category of soups like Knor, Ching's and so on.

Does 'maggi pasta' face a competition with 'maggi noodles'?

Maggi noodles has established a market for its own. It is a brand which has carved a major share of the market. Maggi pazzta does not face competition from maggi noodles because Maggi Pazzta has a customer base, which are loyal to brand maggi but have a taste for pasta.