Market And Competition Business Plan
For example a review of competitor products and prices will enable a business to set a realistic market price for its own products.
The competition section of the business plan aims to show who you are competing with, and why the benefits your product provides to customers are better then those of the competition; why customers will choose your product over your competitors.
In the previous section we described the target market for your business idea.
However, there will be competition for the target market and this will limit the share of the market you can obtain.
He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries.
He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own.
Indeed, you could find yourself competing with businesses from other countries.
Your competitor could be a new business offering a substitute or similar product that makes your own redundant.
You can use this knowledge to create marketing strategies that take advantage of your competitors' weaknesses, and improve your own business performance.
You can also assess any threats posed by both new entrants to your market and current competitors.
This knowledge will help you to be realistic about how successful you can be.
Competition analysis should include answers to the following questions: The focus is on how well the customer benefits and needs are satisfied compared to competitors, and not on how the features of the product compare.
For example, key customer benefits might include affordability, can be purchased online, or ease of use, but not a technical feature list.