Competitive Forces: Competition refers to “the alternative firms that could provide a product to satisfy a specific market's needs” (Kerin, 86). This is a critical element to consider because even though most businesses are aware of their current competitors, they’re not always prepared for the threat of new competition. The competitive forces that make an impact on businesses include alternative forms of competition and small businesses. Two of the four main forms of competition significantly affect Breezometer, which are pure competition and monopolistic competition. Pure competitions involve companies that each have a similar product. In relation to this form, BreezoMeter is competing against companies such “Air Now” and “Air Quality China,” …show more content…
Monopolistic competition is the competition that occurs between two companies that sell substitutable products, typically within a comparable price point. This type of competition would include companies that report air quality data, but through different methods and distribution channels. Examples of this include the U.S. Government’s EPA website, handheld air quality meters from companies such as Extech Instruments, and DIY air quality kits from companies such an Envirocheck. All three of these products provide information regarding the air quality, however, the information is gathered/provided using different methods. Therefore, depending on the preferences of the customers, different air quality businesses will thrive or fail based on their operation methods. Additionally, another form of competition is from small businesses. However, small businesses don’t provide the biggest form of competition for BreezoMeter. It will be hard for these businesses to compete in this industry if they stay small and only focus on a small region; since BreezoMeter has the ability to provide very accurate information for every region. As for small businesses, what really matters to BreezoMeter is that these small business will choose BreezoMeter as their air