Starting a new business shares many similarities as entering a new market. You have to analyze the industry and see who the major competitors are. Afterwards, you need to consider that the people investing in your company are not only investing in your product. Venture capitalists look at a variety of components such as management, market and strategic plans, customers, and finance. If the structure of the company is not sound, venture capitalists will be hesitant to invest in your company. Competitive Response When your competition introduces a new product that is taking away your customer base, there are a few things you should evaluate before determining the correct response. You need to look at how their product differs from yours, what are they doing differently, and if other competitors have started to pick up market share as well. After identifying what your competitors are doing and how they are affecting the industry, you have to decide how to respond. If the company is looking to become a larger threat in the future, you could acquire them, or you could merge with another competitor to become a larger player in the industry. Additionally, you could choose to copy your competitor’s product, or even offer steal your competitor’s talent. …show more content…
Also we have to look at what the competitors are doing to stay relevant in the market. There are easy steps to increasing your sales. These include increasing your volume of buyers and distribution channels, increasing the amount of each sale, increasing prices, and creating a seasonal balance. Creating a seasonal balance means to schedule the most optimal times for a certain product to be