Competitors can be companies within the industry producing similar products or services, such as motorcycles within the motorcycle industry. Or competitors could be companies in rival industries producing products or services that fall into another industry category but that solve the same consumer problem—for example, if the problem being solved is finding a low-cost alternative to owning and driving a car, then owning and riding a motorcycle or taking public transportation would both be competitive solutions. The readers of your business plan will want to know who the direct and potential competitors of your business venture are because they represent a threat to the success of your venture. Understanding who and what your competitors are can reduce the risk of the failure of your business. Here are some questions your readers may ask:
- Who are the competitors? Think in terms of what companies solve the same problems for the customer.
- Identify the major competitors, their products and services, and their strengths and weaknesses.
- SWot Analysis
- How much market share does each competitor control?
- What are their marketing strategies?
- What are their key success factors?
- What differentiates your product or service from the competitors' products or services?
- How are you responding to a customer need in a new, useful, and unique way?
- How much of a threat are your competitors to your venture?
- Do they enjoy strong brand recognition of their products?
- Will they aggressively block the entrance of a new rival?
- Will they recognize your special differentiating attributes and appropriate them for their own products or services?
Posts
No comments:
Post a Comment