You will find competition study tailored to your project in our list of 250+ business plans
All our business plans do include a competition study
How can you easily conduct a competition study to stay ahead in your market?
In this article, we provide a free tool to do so. If you're looking for something more tailored to your specific project, feel free to browse our list of business plans, customized for over 200 different project types here.
We'll also address the following questions:
What are the main elements of a competition study?
How long does it usually take to finish a detailed competition study?
What budget should be set aside for a competition study?
How many competitors should be included in a competition study?
What are the best primary research methods for a competition study?
How often should a competition study be refreshed?
What are the common mistakes to avoid in a competition study?
How can market share be accurately calculated in a competition study?
What key metrics should be used to assess competitors' performance?
How can customer feedback be included in a competition study?
What is the role of SWOT analysis in a competition study?
How can competitive pricing strategies be evaluated?
The document available for as a free example is a business plan. It includes, among other things, a competition study. It is tailored specifically to the realities of a fruit juice bar. If you need a document for your own project, feel free to browse through our list of business plans.
If you have any questions, don't hesitate to contact us.
What Should Be Included in a Competition Study?
Here are the key elements that should be included, all of which you will find in our financial forecasts tailored to 200+ different business projects.
| Element | Description | Purpose | Notes |
|---|---|---|---|
| Market Overview | A general overview of the market, including size, growth rate, and key trends. | To understand the overall market environment and its dynamics. | Include data from reputable sources. |
| Competitor Identification | List of main competitors in the market. | To identify who the main players are in the market. | Categorize competitors by direct and indirect competition. |
| Competitor Profiles | Detailed profiles of each competitor, including their products, services, market share, and strategies. | To gain a deep understanding of each competitor's strengths and weaknesses. | Include SWOT analysis for each competitor. |
| Product/Service Comparison | Comparison of your products/services with those of your competitors. | To identify unique selling points and areas for improvement. | Use a comparative table for clarity. |
| Market Positioning | Analysis of how competitors position themselves in the market. | To understand the positioning strategies of competitors and identify gaps in the market. | Include positioning maps if possible. |
| Pricing Analysis | Comparison of pricing strategies among competitors. | To understand the pricing landscape and identify competitive pricing strategies. | Include price points and pricing models. |
| Marketing Strategies | Overview of the marketing strategies used by competitors. | To identify effective marketing tactics and potential areas for differentiation. | Include digital and traditional marketing channels. |
| Sales Strategies | Analysis of the sales strategies and channels used by competitors. | To understand how competitors reach and convert customers. | Include sales funnel analysis if available. |
| Customer Reviews and Feedback | Compilation of customer reviews and feedback for competitors. | To understand customer perceptions and identify areas for improvement. | Use data from review sites and social media. |
| Financial Performance | Analysis of the financial performance of competitors, including revenue, profit margins, and growth rates. | To assess the financial health and stability of competitors. | Use financial reports and market analysis. |
| SWOT Analysis | Strengths, Weaknesses, Opportunities, and Threats analysis for each competitor. | To provide a comprehensive view of each competitor's strategic position. | Summarize key points for quick reference. |
| Future Outlook | Predictions and trends that may impact the competitive landscape in the future. | To anticipate changes and prepare strategic responses. | Include expert opinions and market forecasts. |
Our financial forecasts are comprehensive and will help you secure financing from the bank or investors.
Common Questions You May Have
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What are the key components of a competition study?
A competition study typically includes an analysis of market size, market share, and growth trends.
It also involves identifying key competitors, their strengths and weaknesses, and their market positioning.
Additionally, it examines customer demographics, preferences, and buying behaviors.
How long does it take to complete a comprehensive competition study?
The duration of a comprehensive competition study can vary depending on the scope and depth of the analysis.
On average, it takes between 4 to 8 weeks to gather and analyze all necessary data.
However, more complex studies with extensive primary research may take up to 12 weeks.
What budget should be allocated for a competition study?
The budget for a competition study can range widely based on the project's complexity and the resources required.
Typically, businesses should allocate between $5,000 and $20,000 for a thorough analysis.
For more detailed studies involving extensive primary research, the budget may exceed $50,000.
How many competitors should be analyzed in a competition study?
The number of competitors to analyze depends on the market size and industry dynamics.
Generally, analyzing 5 to 10 key competitors provides a comprehensive view of the competitive landscape.
In highly fragmented markets, it may be necessary to examine up to 20 competitors.
What primary research methods are most effective for a competition study?
Effective primary research methods include surveys, interviews, and focus groups with customers and industry experts.
Additionally, mystery shopping and direct observation can provide valuable insights into competitors' operations.
Combining these methods ensures a well-rounded understanding of the competitive environment.
How often should a competition study be updated?
Competition studies should be updated regularly to reflect changes in the market and competitive landscape.
It is recommended to update the study annually or whenever significant market changes occur.
In rapidly evolving industries, more frequent updates, such as every six months, may be necessary.
What are the common pitfalls to avoid when conducting a competition study?
One common pitfall is relying too heavily on secondary data without validating it through primary research.
Another is failing to consider indirect competitors who may impact the market.
Additionally, overlooking emerging trends and new entrants can lead to an incomplete analysis.
How can market share be accurately estimated in a competition study?
Market share can be estimated by analyzing sales data, customer surveys, and industry reports.
It is crucial to use multiple data sources to cross-verify the estimates.
Typically, market share is expressed as a percentage of total market revenue or volume.
What metrics are essential for evaluating competitors' performance?
Key metrics include revenue, profit margins, market share, and growth rates.
Other important metrics are customer satisfaction scores, brand loyalty, and operational efficiency.
Analyzing these metrics provides a comprehensive view of competitors' strengths and weaknesses.
How can customer feedback be integrated into a competition study?
Customer feedback can be gathered through surveys, reviews, and social media analysis.
Integrating this feedback helps identify competitors' strengths and areas for improvement.
It also provides insights into customer preferences and unmet needs in the market.
What role does SWOT analysis play in a competition study?
SWOT analysis helps identify the strengths, weaknesses, opportunities, and threats of competitors.
It provides a structured framework for comparing different competitors.
Incorporating SWOT analysis ensures a comprehensive evaluation of the competitive landscape.
How can competitive pricing strategies be analyzed?
Competitive pricing strategies can be analyzed by comparing product prices, discount policies, and promotional offers.
It is also important to consider the value proposition and perceived quality of competitors' products.
Analyzing these factors helps understand how competitors position themselves in the market.