It provides information from which a business owner can create a long-term strategy to minimize risks and take advantage of growth opportunities.
Becoming a member of a competitor’s mailing list to receive promotional material and updates on new products and pricing is a quick and easy source of information.
The information gathered about competitors might not seem like much when looked at separately, but when viewed as a whole, it can be mosaic-like in what it reveals about your competition.
Business owners of new startups or established companies can benefit from thinking through and researching such success-determining issues as: From this list you quickly realize that a business plan is more than a document a business uses to get financing or to attract investors.
It is a roadmap of how your business will operate in order to succeed.
Sometimes, getting information about a competitor might require a bit of sleuthing on your part.
If your competitor has a store that is open to the public, there are no rules prohibiting you from visiting it and taking a look around.If the features of the competing product give it a performance advantage over your own, you can evaluate how important those features are to determine if your product should be redesigned.Another source of information on the product is the internet.You will obtain sufficient information on your industry from the five forces analysis to formulate long- and short-term strategies to incorporate into your business plan.A business plan for startup companies will benefit from an industry analysis that provides ownership with information to make decisions and formulate policy in certain key areas.Where an industry analysis establishes the scope of the marketplace, a market analysis tells a business owner if a market within a particular industry will be profitable for a company’s product.A competitor analysis is a process in which a business obtains information to identify and learn more about key competitors in order to be able to predict how the competition will react.Financing, marketing strategy and future growth all require a well-researched and thought out business plan.There are many articles and resources available on the Internet explaining how to write a business plan, but writing a business plan is more than merely following a business plan template or copying someone’s business plan examples.This gives you the chance to evaluate your competitor’s sales process while you are acquiring the product to test.By using the product, you can compare features on the competitor’s product with those of your own product.