How to do a competitive analysis in 7 steps

Each section in a business plan has a specific purpose. Together, they can help an entrepreneur run their company.

While some sections focus on market opportunity, other aspects of your business plan must address potential challenges. One of these obstacles is competition and your competitors’ strengths and weaknesses. This information influences how you build your new product or encourages you to differentiate yourself from others.

Know your competitors

Understanding the competition can help shape your small business strategy. A complete competitive analysis can serve as a kind of battle plan. It will help ensure your business gets noticed, meets the challenge of new competitors, and sustains itself in a perpetually tough business environment.

This article is originally published on Nov 07, 2019, and updated on May 12, 2022.
A journalist and digital consultant, John Boitnott has worked for TV, newspapers, radio, and Internet companies for 25 years. He’s written for, Fast Company, NBC, Entrepreneur, USA Today, and Business Insider, among others.

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