Not All Competitors Are Obvious. Some Are Hiding In Plain Sight

Ask a professional who they think their competitors are, and more likely than not they'll give you the name of a person working at the same type of firm they are working at, doing the same type of work they are doing, at roughly the same price they are charging.

The difference between the two is almost zero. Hence why they are seen as competitors.

But Direct Competitors is just one of the 5 types of competitor you are likely to see everyday. So for this BD Tips Wednesday post I thought I would provide a high-level overview of the five different types of competitors you face.

1. Clients

"What, how can my client be a competitor?"

I'm here to tell you that the biggest threat to your practice comes from inside your client’s own organisation. Many are bringing work in-house: building internal legal, strategy, risk, or procurement teams that reduce reliance on external firms. This shift is particularly relevant when clients feel they can do the work more cheaply, quickly, or with more control.

2. Internal

"What, how can my partners be a competitor?"

In most professional firms, internal competition is real. Different partners, practice areas or office locations all pursue the same client opportunities. If you’re not aligned internally - not integrated financially , if teams operate in silos or fail to collaborate then you face the very real risk of losing work to your own colleagues, or confusing the client altogether.

3. Emerging

This is the fast-moving, disruptive category. Think AI tools, self-service platforms, or outsourced providers that offer faster, cheaper or more scalable solutions.

These competitors often come from outside your traditional industry, but they’re changing client expectations. If clients can get a task done more efficiently elsewhere, they’ll switch, even if it means rethinking long-standing relationships.

4. Indirect

Indirect competitors solve the same client problems, but through a different model or lens. For example, instead of engaging a law firm, a client might choose to use an Alternative Legal Service Provider (ALSP), or a technology platform that automates compliance.

Indirect competitors may not be as visible to you. Even when they are visible, they are often dismissed out of hand. But the indirect competitor segment is the fastest growing competitor segment and are currently eroding your share of wallet without you even knowing it!

5. Direct Competitors

These are your classic competitors, the most obvious group of competitor. As I stated at the start, they are typically firms that offer the same services, to the same clients, at the same price-point. You see them in tender processes, on legal or consulting panels, or mentioned in conversations with your clients.

They’re easy to identify and often the benchmark for pricing, marketing and your business development strategy.

And, they are the least of your worries as they also are unknowingly facing the challenges of four other competitor types!

Wrapping it up

Competition today is more than just the firm across the street. It’s anyone, or anything, that takes budget, attention or loyalty away from your offering.

By broadening your view of the competitive landscape, you can respond more strategically and build offerings that truly stand out.

So next time don’t just ask: “Who’s our competition?”,

Instead ask:

“Who else is solving our client’s problems and how can we do it better?”

Need Help With Your Business Development?

Get in touch if you want to talk about any of this. We also offer a very affordable BD Audit and Training package.