Competition Business Plan
' Deciding who your direct and indirect competitors are and how you compare with them is an essential step in determining how you should sell and market your product or service.Competition analysis is looking at your competitors' strengths and weaknesses compared to your company's.Try it risk-free Do you own a business and want to know how to stand out from the pack?In this lesson, we will discuss what competition analysis is, how to determine your competitors, and ways to compare yourself to competitors through business planning.Using SWOT analysis on competitors allows a company to determine a competitor's strengths and weaknesses, as well as relevant opportunities and threats that can guide business planning. We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities.You can test out of the first two years of college and save thousands off your degree.
The Competition Analysis can be a difficult and intimidating section of the business plan.It is crucial for you to know information about your competitors so you can make your products or services different and, ideally, better than theirs. They are your direct competitors because they are the same type of business (restaurants), and they also serve the same kind of food.You must determine which competitors are your direct competition and which are your indirect competitors so that you can use this information in your business planning. An example of an indirect competitor would be a French restaurant. The best way to learn who your competitors are is through research.Competition analysis can be done whenever you are planning a product or service launch or revision.Using a SWOT analysis on competitors makes it easier to visually analyze a competitor's strengths, weaknesses, opportunities, and threats.A threat is an outside issue that can affect a company's performance.An example of a threat is an economic downfall in another country where goods or the raw materials needed to manufacture them are obtained.You can determine your strengths compared with theirs after doing research.The point of doing this is to learn how you can make your product or service stand out and use that information in planning your business activities.Weaknesses are what the competition needs to work on: the cost of goods is too high, which may be causing the company to have to continue to raise prices.An opportunity signals a business to improve its product or service by using competitive advantage.