Are a company’s competitors always in the same industry?

Which is better Lay’s original potato chip or Pringles original? When discussing competition among potato chips many of us think of other potato chip brands and flavors. However, that is not always the case. Lay’s potato chips can have some competition with healthy snacks like baby carrots and hummus. Companies don’t always have competitors in the same industry. Depending on what satisfies consumers wants and needs, other companies could compete with you. Sabra hummus and carrots could easily compete with Lay’s chips, depending on buyer behavior and attitude toward a brand could affect competition with other brands.

Depending on the snack occasion consumers may pick healthy fruits and vegetables over classic party treats like potato chips. A mother hosting a birthday party for her 10-year-old and friends may decide its best to have vegetable trays and fruit cups rather than sugary and salty food at the party. Alternatively, college students having a spring break party may decide having every flavor of Lay’s chips they can find will pair with their Bud Light and Vodka. By having competition between a wide variety of brands consumers get the choice of price, selection, and service. Consumer beliefs and life stage impact competition between competitors. A 25-year-old trying to be more healthy is less likely to buy a bag of potato chips to snack on than a teenager on their way home from school. Depending on consumer behavior, businesses could have more competition. Someone who eats both healthy and unhealthy snacks gives Lay’s competition with healthy and organic snacks. This is a variable that could affect what competition a company wants to consider. If Lay’s wanted to get more consumers buying their healthier snacks they would consider Sabra, or KIND bars as competition.

While it is important to keep all competitors in mind, competitors in the same industry are more important to focus on. For example, even though Lay’s offered healthier options of their snacks like baked organic chips, there are some consumers that are extremely health conscious and would never even consider buying Lay’s products. Competing with a direct competitor should be a businesses primary focus because there will be similar target consumers that are already considering the brand. When a consumer is considering making a purchase on a product and there are several brands to choose from you will want to focus on the consumer that is already in this process.