Competitive Edge provides Feasibility Studies that: Ensure only commercial opportunities are embraced.
The Competitive Analysis section of your business plan is devoted to analyzing your competition--both your current competition and potential competitors who might enter your market. Every business has competition. Understanding the strengths and weaknesses of your competition--or potential competition--is critical to making sure your business survives and grows.
While you don't need to hire a private detective, you do need to thoroughly assess your competition on a regular basis even if you only plan to run a small business.
In fact, small businesses can be especially vulnerable to competition, especially when new companies enter a marketplace. Competitive analysis can be incredibly complicated and time-consuming Here is a simple process you can follow to identify, analyze, and determine the strengths and weaknesses of your competition.
Profile Current Competitors First develop a basic profile of each of your current competitors. For example, if you plan to open an office supply store you may have three competing stores in your market. Online retailers will also provide competition, but thoroughly analyzing those companies will be less valuable unless you also decide you want to sell office supplies online.
Although it's also possible that they--or, say, Amazon--are your real competition. Only you can determine that. To make the process easier, stick to analyzing companies you will directly compete with.
If you plan to set up an accounting firm, you will compete with other accounting firms in your area. If you plan to open a clothing store, you will compete with other clothing retailers in your area.
Again, if you run a clothing store you also compete with online retailers, but there is relatively little you can do about that type of competition other than to work hard to compete in other ways: Once you identify your main competitors, answer these questions about each one.
It's easy to identify weaknesses in your competition, but less easy and a lot less fun to recognize where they may be able to outperform you: What are their strengths? Price, service, convenience, extensive inventory are all areas where you may be vulnerable.
What are their weaknesses? Weaknesses are opportunities you should plan to take advantage of. What are their basic objectives? Do they seek to gain market share?
Do they attempt to capture premium clients? See your industry through their eyes. What are they trying to achieve? What marketing strategies do they use?
Look at their advertising, public relations, etc. How can you take market share away from their business? How will they respond when you enter the market? While these questions may seem like a lot of work to answer, in reality the process should be fairly easy.
You should already have a feel for the competition's strengths and weaknesses To gather information, you can also: Check out their websites and marketing materials.A discussion of your competitive edge can be part of the section of your business plan that deals with the description of your company, or it can be the introduction to your marketing plan.
When preparing the marketing plan, the business owner identifies all the possible distribution channels the company could use and the market potential of each one. Write a Competitive Edge for. Rutabaga Sweets dessert bakery business plan competitive edge. Rutabaga Sweets is a dessert bar and bakery in Washington D.C/5().
One of the most important aspects of competitive advantage is the sustainability of that advantage. Simply having a better product will not ensure long-term success, since as others observe your successes, they will soon try to copy your idea.
Your competitive edge may lie in any of the your company's key distincitions, including cost, features, service, quality, distribution and so forth.
Or it . The business plan competitive advantage section is best presented in a two column format. In the example below, the first column shows the competitive advantage, and the second column gives a brief comment about the advantage.