15. Competitors
15.1 Identify the top three competitors.
15.2 To what degree are these other firms true competitors? Do they actually supply the same product or service?
15.3 What are the percentages of the industry that your target firm and each of its major competitors control?
15.4 Is one of these firms emerging as a leader?
For the same reason we need to understand the industry in which your firm operates, we need to identify their direct competitors. This identification of a peer group is important for comparison, as well as seeing where your target firm fits in terms of its competitors.
Firms often identify competitors on their web page. The D&B reports (which you must purchase) also provide basic information on competitors.
Businesses must register with the Secretary of State office in the state they are located. Search Systems provides a meta search for all states in the U.S. and provinces in Canada. The best way to proceed is to choose “Corporations and Companies” and then select the state or province where the firm is headquartered. This will bring you to one or more corporate directories. This may vary by state or province. You can also search by state or province alone and explore all the possible information that is collected.
Open Corporates also provides access to public records on privately held firms worldwide.
When evaluating competitors, it is important to identify if they are true competitors. Do they actually produce the same product mix and have similar clients or customers?
Paid Resources (Requires Subscription)
Business Insights: Essentials and Mergent Market Atlas are great places to begin competitor research.
CFRA’s MarketScope Advisor Database and IBIS World industry reports are also excellent sources of information on competitors.