Competitor Analysis

Once you have assessed the target market and that you have a product to solve the problems that market is willing to pay for, you need to show what competition you are up against, and how you will carve your niche.

Ideally you have identified a new market that solves a problem which currently has no solutions, but be aware that customers may be working around thew problem, so whilst the solution you propose may not exist, the actual competition to conquering that market may not be obvious.

If you have a superior product at a lower price, then be aware that situation may not last as your competitors are likely to respond to a threat to their revenue with enhancements or cost reductions. Clearly show how your product is differentiated, how that differentiation matters to the customer base, and how you protect that USP (Unique Selling Point).

Be as open and honest as you can, find out what your target market are using, and why they like it, and what they don’t like about it. Then match up your solution and show how your proposed superiority will be recognised by the customers and how that translates to sales.

The risk of competitors responding will form part of your risk analysis, but the competitor analysis should show how much of a threat you will be to them.

You should show all know solutions that customers may choose instead of yours, their cost, features and (if available) their current market share.