Business – 3.2 Market research – Purposes | e-Consult

Answer:

• Direct competitors: Companies offering the same product or service to the same customer segment.
  Differentiation: Introduce a unique feature set or superior quality that addresses an unmet need.
• Indirect competitors: Firms providing alternative solutions that satisfy the same underlying customer need.
  Differentiation: Emphasise convenience or cost‑effectiveness that the alternative cannot match.
• Potential entrants: New firms that could enter the market due to low barriers to entry.
  Differentiation: Build strong brand loyalty and secure exclusive distribution channels to raise entry barriers.