Categories of competitors

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Competitor analysis is crucial for new ventures, and it can hide some benefits.

There are four categories of competitors that new ventures must evaluate[@ianuzzi2017Entrepreneurship for Physicists]

  • Business Killer: companies operating in the same space with the resources and capabilities to develop a competing product
  • Technology Capable: have the resources and capabilities but do not operate in the same space. Care must be taken because a new venture may just validate the market for free. In the long run, the one with the best strategy will win (see: External analysis for new ventures)
  • Market present: Companies that do not have the resources or capabilities to compete with your product, even if they are in the same space. They can be explored for cooperation.
  • Suicidal imitator: Companies that try to imitate even if they don't have the capabilities nor resources. They are not to worry about.

For scipreneurs, there is a chance that the object to be developed is a disruptive innovation, and in that case the biggest advantage is that:

The most powerful protection that small entry firms enjoy is that they are doing something that it simply does not make sense for the established leaders to do (Referred in [@ianuzzi2017Entrepreneurship for Physicists])


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