Elements of a Business Plan: Competitive Analysis

As an element of a business plan, competitive analysis must be clearly stated. It should consist of strategy of the business and strategy to face business competitors. By stating competitive analysis, you will be able to know the strong and weak points of your competitor so that you will be able to make the best strategy to win the competition. Using the competitive analysis, you will be able to change any limitation to be your strengths that can be used for preventing your competitors to enter your market.

In order to make a clear competitive analysis, you will need to identify your competitors. Basically, you can group your competitors based on two things, customers’ point of view and strategies your competitors use. Then, you should analyze their strengths and weaknesses in order to know their position in the market. Knowing such information will enable you to determine what the right strategy is. This information will help you to make effective marketing campaign by highlighting any assets your competitors don’t have.

There are many ways to make competitive analysis and one of them is by making a grid showing the strengths and weaknesses of your competitors. Through the grid, you will easily find out what factors you should highlight, develop and improve. Therefore, to set a distinct business strategy, competitive analysis is highly recommended.