a single source, nothing corroborates it
Treat nearby competitors as proof of demand
Rivals in the same space can grow the total market rather than divide it, in the way a cluster of restaurants turns an area into a destination. They also give your customers something to compare you against, which is the feedback that tells you what to fix.
The method
- 01
More competitors nearby can either split the same spending or grow the total, because clustering makes the whole area a destination.
- 02
Competitors give your customers something to compare you against, and that comparison is how you learn what to fix. A monopoly silences that feedback because people make do with what they have.
What it returned
Four restaurants in one area divide customer spend, yet culinary neighbourhoods pull in more traffic overall.
Sources
- Do entrepreneurs create demand?Justin Jackson · justinjackson.ca · Competition can hurt customer demand (or improve it) · undated
- Why Competition is Good For Business – The Bootstrapped FounderArvid Kahl · thebootstrappedfounder.com · Competition forces Adaptation · 2021-08-12
the second source
Three plays a week, for the phase you are in
No roundup of links, no news. Three tactics more than one builder arrived at separately, with the numbers each one returned and the disagreements left in.
More in positioning
- Do the boring market homework yourself7 unconnected · contested
- Build for a market you already belong to6 unconnected
- Aim everything at the segment you already win6 unconnected
- Narrow the category until you are its only occupant6 unconnected
- Pick the fight the incumbent cannot win6 unconnected
- Pick the market nobody is excited about6 unconnected