Competition, like supply, covers a broad range of topics that may be not be immediately obvious. Competition from other businesses may be a negative. But, competition across a range of suppliers can be positive in helping to keep costs down and margins up.

Competition should be assessed in terms of industry, location, premises, plant and equipment, people and that the availability of funding, as well as those more normally considered.

Ease of entry into the industry can place constant pressure on price margins. But, capital costs can limit entry and be positive.

Businesses who have built a strong position in a niche probably have a good defence against competition. It’s something small operations should strive for, rather than participating in the same industry sector as larger players.

Graham Long

Disclaimer: The views expressed in this article are those of the Writer. The information is not meant to be exhaustive. Readers are responsible for making their own inquiries and assessments as to the truth and accuracy of all the information given and should seek advice from professionals. No liability (in contract, tort or otherwise) will be accepted for any loss or damage incurred as a result of reliance upon any material contained in this publication or any information or advice provided in this publication or incorporated in it.

Kevin Lovewell
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P: 1300 551 757
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Member & Registered Business Valuer
Australian Institute of Business Brokers

Jessica Holbrook
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E: Click here to contact Negotia Group
Business Analyst