Identify your Industry and the Competition
To deal with competition, you must understand who your competitors are, how they compete, and how you can make your business different enough to offer more value to your customers. Direct competition offer products and/or services similar to the ones your business sells. Indirect competitors offer products and/or services different from the ones you sell but which to some extent meet the same needs. (I.e.: video rental and movie theaters)
| Identify your Industry | |
| What is the history of your industry, has it been healthy for awhile or is it new? What has caused the current growth or fall? | |
| Describe the future of your industry as you see it. What influences its growth? Is there anything that can cause it to grow or plummet? How will the market be effected by these changes? | |
| Describe the major direct competition to your industry. List the most important direct competitors by name, indicate how each competes (or is positioned) in the market. Estimate what market share each has. | |
| Describe your indirect competition. When and why do customers turn to the indirect competition? | |
| Describe how you will make your business differ from you direct competitors. | |
| Is there a way you can attract business away from indirect competitors? |
What factors influence your market?
Among the kinds of factors that could be scanned are economic, political, technological, social, legal and population (demographic) changes. Which factors will be significant will of course vary from business to business.
| Identify and evaluate likely economic changes that could affect your business. | |
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Identify and evaluate likely political changes that could affect your business. |
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| Identify and evaluate likely technological changes that could affect your business | |
| Identify and evaluate likely social or life style changes that could affect your business. | |
| Identify and evaluate likely legal changes that could affect your business. | |
| Identify and evaluate likely population (demographic) changes that could affect your business. | |
| Identify and evaluate likely other likely changes in business environment that could affect your business. | |
| Summarize
your findings
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