Competitive pressure

The competitive pressure is a way to measure the weight of all of the competition present in a certain geographical area. When dividing the Market potential by the competitive pressure, you get the Gross market space for the primary, secondary and tertiary Catchment area.

The competitive pressure is expressed as a number. The higher this number, the higher the competitive pressure. Typically, a direct competitor equals weight 1. E.g. A competitive pressure of weight 2 in the primary catchment area corresponds with the presence of 2 direct competitors in this primary catchment area.