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.
As painful and challenging as it can be for a business to build a competitive advantage — that advantage is often fleeting. External change such as competition, markets, business models, environment, customer preferences and technology deprecate your competitive advantage with time.
In business, what works today won't work tomorrow. Another reason that competitive advantage decays is that firms tend to copy each other. If you develop a successful product, it will quickly be mimicked. If you develop a effective marketing technique it will be copied.
Sustainable competitive advantage is something you do better than any other firm that's not likely to decay. Sustainable Competitive Advantage Sustainable competitive advantage is a lasting ability to outperform all competition in a particular area or industry.
As elusive as sustainable competitive advantage is, it's easy to think of examples. People The knowledge and abilities of your people is the source of most competitive advantage.
If you hire a modern day Thomas Edison who pumps out ground shaking innovation after ground shaking innovation as long as you hold unto the employee that's a sustainable competitive advantage.
This scales to organizations big and small. Your people are typically your greatest competitive asset. Products come and go — a team that can repeatedly design products that wow your customers is sustainable.
Culture Sustainable competitive advantage is all about your ability to innovate and change. You may have a highly talented team. However, if they don't work together towards a common mission that's unlikely to translate to a sustainable competitive advantage.
Negative office politics and resistance to change will cause your competitive advantage to rapidly decay. Your culture is the way your team works together to focus their energies towards common goals. Firms that enjoy a culture of aggressive change, positive teamwork and innovative spirit tend to maintain and build upon competitive advantages.
Processes If you can manufacture shiny-blue-widgets faster and cheaper than anyone else — this may represent a sustainable competitive advantage. Superior processes can be difficult for your competitors to emulate.
In some cases, this is because processes happen behind closed doors. However, even public facing processes such as customer service are difficult for firms to copy. Some firms have good relationships with customers that continue decade after decade.
Other firms have combative relationships with customer that continue until the firm goes bankrupt.
Knowledge The secret of business is to know something that nobody else knows. However, much of the world's industry specific knowledge is locked up in the knowledge management systems of firms.
You can't read on the internet how to design, produce and sell aircraft. It requires a great deal of knowledge that's difficult to obtain. In many industries, know-how is a big barrier to entry.
There's no public manual for how to start an investment bank or robotics company. The great thing about knowledge is that it helps you change. It's sustainable as long as you continuously improve it. Technology Firms weave together technologies to support innovation, production, processes and customer relationships.Sample Business Plan: Vintage Home and Residential Care Published on May 20, This is a sample business plan written by The Startup Garage for .
For your business to be great, it needs to weather competitive and environmental storms.
Chapter 4 How to Conduct a Competitive Analysis for Your Online Business [with Templates] Katey Ferenzi / 10 min read By analyzing your competition and then monitoring them on an ongoing basis, you’ll get to know their behavior, enabling you to anticipate their actions and stay one step ahead. Jun 30, · A business can either do a focus or a leadership type approach to competition. In a focus, the business aims to have an advantage over a couple of the other businesses, e.g. one or two. Business Plan for Platte County Assisted Living Facility Page 3 provide exceptional care at an affordable price, implementing industry “best practices” to .
You have to be able to combat today's fierce market forces and uncertainty. In other words, your competitive advantage needs to be sustainable and able to endure the test of time for your company to be great. The Competitive Analysis section of your business plan is devoted to analyzing your competition--both your current competition and potential .
Chapter 4 How to Conduct a Competitive Analysis for Your Online Business [with Templates] Katey Ferenzi / 10 min read By analyzing your competition and then monitoring them on an ongoing basis, you’ll get to know their behavior, enabling you to anticipate their actions and stay one step ahead.
In their book Write Your Business Plan, the staff of Entrepreneur Media offer an in-depth understanding of what’s essential to any business plan, what’s appropriate for your venture, and what. Just listing a bunch of information about your competition in the competitor analysis section of the business plan misses the point.
It's the analysis of the information that's important.