Two Categories of Competitors

When you have a vertical market focus, you have two categories of competitors:

• Generalists

• Vertical Specialists

Generalists are businesses that serve customers of all shapes and sizes. 

For example: Facebook Ad Agencies, CPAs, Financial Services firms, etc., all serving a broad audience.

Vertical Specialists are businesses that have a concentrated focus on a vertical market. 

For example: digital marketing for HVAC, PR for non-profits, web design for multi-location medical practices, etc.

Your customers are being targeted by both types of competitors--Generalists & Vertical Specialists.

Knowing how to effectively position your company against them is essential.

Hint: you position against each category in different ways (more on this soon).

Questions to ponder:

👉 Do we know who our Generalist competitors are?

👉 Do we know who our Vertical Specialist competitors are?

Frequently Asked Questions

What defines a "Generalist" competitor?

A business that serves customers of all shapes and sizes without a narrow focus, like a broad Facebook ad agency, a CPA firm, or a general financial services firm serving any type of client.

What defines a "Vertical Specialist" competitor?

A business with a concentrated focus on a specific vertical market, like digital marketing for HVAC companies, PR specifically for non-profits, or web design tailored to multi-location medical practices.

Why does it matter that customers are being targeted by both types of competitors simultaneously?

Because a vertical-focused business needs to be prepared to differentiate against two very different kinds of competition at once, generalists offering broad capability and specialists offering competing depth in the same niche.

Why would positioning against a Generalist competitor differ from positioning against a Vertical Specialist?

Because each represents a different kind of threat. A generalist competes on breadth and often price, while a specialist competes on depth and relevance within the same specific vertical, requiring a distinct differentiation strategy for each.

What's the practical first step before developing positioning against these two competitor types?

Actually identifying who falls into each category, both the generalist competitors and the vertical specialist competitors currently targeting the same customer base, before crafting a distinct response to each.