The purpose of the Competitor and Issues Analysis section of your marketing plan is to explain in detail the external challenges and opportunities your business may face.
Some of the benefits of doing a competitor and issues analysis are:
you will discover your company's competitive advantage - the reason customers do business with you instead of your competition. Then you will be able to communicate your competitive advantage effectively to win potential customers.
Analyzing current issues and your competitors' offerings may spur ideas for innovative improvements to your product offerings.
You might find that there are some categories of customers whose needs are not being met. For example, if you plan to prepare and deliver gourmet meals, you may discover that a particular part of town is not currently being served. If you can satisfy unmet needs, you will develop a market niche.
By observing the actions of your competitors, you might learn more about your market. For example, does a successful competitor offer reduced prices during a particular season? If so, what might that tell you about your market's spending habits?
If you find that your market is saturated with capable competitors, you can avoid the costly mistake of starting a business without adequate demand. You can then redirect your efforts toward something that will pay off instead. (For example, your research may tell you that there's an ample number of thriving gourmet meal services in your targeted market area already.)
Learn more about how to complete them:
