Any company can easily lose market share because of a failure to properly consider changes in its markets and the actions of competitors.

Such companies may become over-reliant on products with declining sales, fail to adapt to new consumer tastes, stick with a flawed pricing strategy, or fail to integrate technology as effectively as their peers.

Many other variables can impact the competitive position of a company, including training, marketing, location, policies, branding, recruitment and reward schemes.

While analysis of competition risk can appear complex and daunting, failure to manage this risk can lead to disastrous consequences.

Critical questions you need to consider

• Do you understand the competitors that exist in your market segments, and have you analysed them in terms of the level of threat that they pose to you?

• Do you understand the precise reasons why you are competitive in your market and where your competitors stand in relation to those strengths?

• What are the barriers to entry for competitors that surround your products and services?

• Have you fully considered how you can defend your products and services through your brand strategy?