Competitive risk refers to the potential for a company to face challenges and threats from competitors in the market. This can include factors such as pricing pressure, loss of market share, and the introduction of new products or services by competitors. Companies must assess and manage competitive risk in order to maintain their competitive advantage and protect their market position.
Competitive risk refers to the potential for a company to lose market share, customers, or revenue due to actions taken by competitors.
Competitive risk can be managed through strategies such as market research, product differentiation, pricing strategies, and building strong customer relationships.
In some cases, a company may be held legally responsible for causing competitive harm to a competitor through actions such as unfair competition, antitrust violations, or intellectual property infringement.
Common examples of competitive risk include new competitors entering the market, changes in consumer preferences, pricing pressure, and technological advancements.
A company may have legal grounds to sue a competitor for causing competitive harm if the competitor engages in unfair business practices, violates antitrust laws, or infringes on the company’s intellectual property rights.
A company can protect itself from competitive risk by staying informed about market trends, maintaining a strong brand reputation, and continuously innovating its products or services.
Non-compete agreements can be used to prevent employees or business partners from working with competitors for a certain period of time, thereby reducing the risk of sensitive information or trade secrets being used against the company.
Market research helps companies understand their competitive landscape, identify potential threats, and develop strategies to stay ahead of competitors.
A company can assess its level of competitive risk by conducting a competitive analysis, evaluating market trends, and monitoring the actions of its competitors.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 5th April 2024.
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