Your reader really only wants to know the ‘so what? Don’t just regurgitate the data from your analysis. If your industry is failing, explain why and how your company will be different.
If the marketplace already seems flooded, show how that will not affect your sales.
Look for it on the companies’ websites, annual reports, consumer reports, customer reviews or by walking into the store and asking questions.
Once you have gathered all of this information into your grid, examine each company, including yours, and identify their strengths and weaknesses.
Writing the Competition Analysis in a business plan can be intimidating.
It’s meant to be an in-depth process that requires a lot of research and critical, impartial thinking on your part.A SWOT analysis is a valuable tool in business planning and the perfect way to compare yourself to your competitors.The analysis can be a time-consuming process, so limit your analysis to the top two or three direct competitors, one indirect and one future.Your analysis is what you’ll include in your business plan.Your first job is to identify your direct competition (companies that sell the same product you do), indirect competition (companies that sell a suitable replacement product) and future competition (companies you’re aware of that may expand to sell similar product in the future).Along the top, list your company and the others you want to analyze.Down the left-hand side, list important pieces of information you want to gather about each company—-name, owner, address, etc., and important aspects about products and services, customer service, target customer base, what gives them a competitive advantage, and financial aspects like pricing, annual sales and quality ratings.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 best: your company and the customers you serve.Direct competitors offer a similar type of product within the same market.Indirect competitors offer a different type of product that serves the same need.