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Competitive
Analysis for start up business
plan
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One of the most essential
parts of the strategic planning process is competitive analysis. The
competitive analysis section of a business plan requires careful
research about your competitors. Every business is full of
competitions. There are many entrepreneurs who claim that they have no
competitors; that’s the biggest mistake they have made. Research
thoroughly about your competitors and give detail information, which
contains: their background information, the product or service they are
selling and their strength and weaknesses. A thorough research about
your competitors, help you to introduce a better product or service
then them.
In any business plan, competitive analysis is a significant
requirement: (a) it tells the organization’s competitive position in
the “marketplace”, (b) help you to create strategies to be competitive,
(c) investors and lenders of the business plan want to see competitive
analysis in a business plan. Business plan is considered as an
unrealistic plan, it you ignore this very important part.
Who is your competition?
Identifying your competitors:
There are different types of competitors you will face in your
marketplace. It is essential to identify your competitors before
starting a competitor analysis:
• Direct competitors: These competitors are directly affecting your
business. Customers can easily buy their desired products from them.
For example: Puma and Nike, Coke and Pepsi, etc.
• Indirect competitors: These competitors are present in the market,
but not directly affecting your business. They offer close substitutes
of the products and services you are offering.
• Future competitors: These are the competitors, who are not yet in the
market, but they can come anytime.
It is better to show all types of competitors in competitive analysis
of your business plan, in order to avoid future tension.
Finding your competitors:
Finding your competitors is not an easy task. Now a day’s Internet is
the perfect place to find your competitors. You can easily search about
your competitors on the World Wide Web.
Analyzing your competitors:
Once you have the list, next step is to analyze your competitor’s
strengths and weaknesses. By analyzing their strengths and weaknesses,
you will be able to bring better product then them in the marketplace.
Defining your competitive position:
This is the last portion of competitive analysis section in, which you
describe the factors that will lead your products and services better
than your competitors.
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Article Source: http://www.a1articles.com/article_1367658_15.html
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