In other section of your business plan, the focus was on what you knew best:
Your access to competitive information will vary. Competitors that are publicly traded may have a significant amount of information available. Competitive information may be limited in situations where your competitors are privately held. If possible, you may want to take on the task of playing the role of a potential customer and gain information from that perspective.
Discuss how your service offering compares to the others. Your travel agency might offer better airline ticketing than others, or perhaps it is located next to a major university and caters to student traffic. Your graphic design business might be mid-range in price, but well known for proficiency in creative technical skills.
Your management consulting business is a one-person home office, but enjoys excellent relationships with major personal computer manufacturers who call on you for work in a vertical market in which you specialize.
Discuss how you are positioned in the market. Why do people buy your services instead of the other services offered in the same general categories? What benefits do you offer? How does your mix compare to others?
Think about specific kinds of benefits, features, and market groups, comparing where you think you can show the difference your company provides relative to your competition. Explain the general nature of competition in this business, and how the customers seem to choose one provider over another.
In the restaurant business, for example, competition might depend on reputation and trends in the high-end part of the market, and on location and parking for a fast food restaurant. In many professional service practices, the nature of competition depends on word of mouth because advertising is not completely accepted.
Is there price competition between accountants, doctors, and lawyers? How do people choose travel agencies or florists for weddings? Why does someone hire one landscape architect over another?
Why choose Starbucks, a national brand, over the local coffee house? All of this is the nature of competition. These considerations provide focus to your competitive analysis: What factors make the most difference for your business? What might make customers choose one of your types of business over another?
Price or billing rates? Are brand names important or is it simply word of mouth, in which the secret is long-term satisfied customers? In what segments of the market do your competitors operate?
What seems to be their strategy? How much do they impact your business, and what threats and opportunities do they represent?A key part of any business plan is the market analysis.
This section needs to demonstrate both your expertise in your particular market and the attractiveness of the market from a financial standpoint.
The market analysis section of your business plan comes after the products and services section and should provide a detailed overview of the industry you intend to sell your product or service in, including statistics to support your claims.
Just listing a bunch of information about your competition in the competitor analysis section of the business plan misses the point. It's the analysis of the information that's important.
The Competition Analysis can be a difficult and intimidating section of the business plan. In other section of your business plan, the focus was on what you knew .
We would like to show you a description here but the site won’t allow us. A competitive analysis is a critical part of your company marketing plan. With this evaluation, you can establish what makes your product or service unique--and therefore what attributes you play.