Competition can offer benefits as well as threats to your participation in the industry.
Competition may actually increase your competitive advantage by providing such benefits as a cost umbrella.
They can assist in market development activities, and thereby increase the overall demand for your offering.
Their actions may also deter new market entrants by crowding distribution channels thereby allowing you higher margins.
Competitors can also threaten your position by attacking your offerings and your moves in the market.
This chart presents your competitors as being threats or benefits to your efforts.