Indeed, you could find yourself competing with businesses from other countries.
Your competitor could be a new business offering a substitute or similar product that makes your own redundant.
Each row represents a key benefit to the customer, the first column represents your business, and the remaining three columns each represent a chosen competitor.
At the top of each column, details of the size of the business in terms of net assets and unit sales are shown.
This guide explains how to analyse who your competitors are, how to research what they're doing and how to act on the information you gain. Even if you're the only restaurant in town you must compete with cinemas, bars and other businesses where your customers will spend their money instead of with you.
You can use this knowledge to create marketing strategies that take advantage of your competitors' weaknesses, and improve your own business performance.Your business plan outlines what your business does and what you are trying to achieve.It explains what the market opportunity is, what makes your business special and how you will make it a success.In the previous section we described the target market for your business idea.However, there will be competition for the target market and this will limit the share of the market you can obtain.The competitors might be individual identified companies, or a generic competitor such as ‘fast food restaurants’.In the example below, the key benefits of the product are compared against three main competitors.If you can’t find any competitors, the chances are there isn’t a market.By carrying out a competitor analysis a business will be able to identify its own strengths and weaknesses, and produce its own strategy.You can also assess any threats posed by both new entrants to your market and current competitors.This knowledge will help you to be realistic about how successful you can be.