Marketing Plan - Competitive Analysis
Competition
What products and companies will
compete with you?
List your major
competitors with names and addresses:
Do they compete
across the board with your entire business, or just
for select products, customers, or only in certain
locations?
Are there any important
indirect competitors? (For instance, personal chefs
compete with restaurants, even though they are different
businesses entirely.)
How do your products
or services compare with your competitions?
Below
is a Competitive Analysis table.
Use the table to compare your company with the two
most important competitors to your business. In
the first column of the table, there are some standard
competitive factors; of course you may need to customize
the list of factors for your unique business.
In the column labeled
My Business, evaluate how your
business compares to your competitor’s to your prospective
customer. Then consider whether each of these factors
are strengths or weaknesses to your business. It
may be difficult to evaluate your own business weaknesses
but it’s better to be honest than misguided. Another
option is to consider asking someone outside of
your business to help you with the evaluation. The
Small Business Administration can help you connect
with a business professional to act as your mentor.
That person can add invaluable insight into the
business planning process. A neutral observer can
help you evaluate your business without the emotional
attachment you bring to the picture.
Next, use the table
to analyze each of your competitors. Briefly sum
up how they compare to your business.
Finally, think
of how your customer will view these factors – how
important is each of the criteria to the customer
with 1 being critical and 5 being unimportant.
Table
1: Competitive Analysis
|
Factor |
My
Business |
Strength |
Weakness |
Competitor
A |
Competitor
B |
Importance
to
Customer |
| Products |
|
|
|
|
|
|
| Price |
|
|
|
|
|
|
| Quality |
|
|
|
|
|
|
| Selection |
|
|
|
|
|
|
| Service |
|
|
|
|
|
|
| Reliability |
|
|
|
|
|
|
| Stability |
|
|
|
|
|
|
| Expertise |
|
|
|
|
|
|
| Company
Reputation |
|
|
|
|
|
|
| Location |
|
|
|
|
|
|
| Appearance |
|
|
|
|
|
|
| Sales
Method |
|
|
|
|
|
|
| Credit
Policies |
|
|
|
|
|
|
| Advertising |
|
|
|
|
|
|
| Image |
|
|
|
|
|
|
Sum up the results of the table
with a few brief paragraphs that state as completely
as possible your competitive advantages and disadvantages.
Niche
After you’ve completed your analysis of the overall
industry, and specifically your products and customers,
narrow your focus. Describe how your business addresses
a particular niche – a unique part of the market
or industry.
Back to more Business
Plan for a Startup Business
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careers, and life skills please go to the Money
Instructor home page.
