How to Write a Competitive Analysis for Your Business Plan

Charts and graphs being viewed through a magnifying glass. Represents conducting a competitive analysis to understand your competition.

11 min. read

Updated January 3, 2024

Do you know who your competitors are? If you do, have you taken the time to conduct a thorough competitor analysis?

Knowing your competitors, how they operate, and the necessary benchmarks you need to hit are crucial to positioning your business for success. Investors will also want to see an analysis of the competition in your business plan.

In this guide, we’ll explore the significance of competitive analysis and guide you through the essential steps to conduct and write your own. 

You’ll learn how to identify and evaluate competitors to better understand the opportunities and threats to your business. And you’ll be given a four-step process to describe and visualize how your business fits within the competitive landscape.

  • What is a competitive analysis?

A competitive analysis is the process of gathering information about your competitors and using it to identify their strengths and weaknesses. This information can then be used to develop strategies to improve your own business and gain a competitive advantage.

  • How to conduct a competitive analysis

Before you start writing about the competition, you need to conduct your analysis. Here are the steps you need to take:

1. Identify your competitors

The first step in conducting a comprehensive competitive analysis is to identify your competitors. 

Start by creating a list of both direct and indirect competitors within your industry or market segment. Direct competitors offer similar products or services, while indirect competitors solve the same problems your company does, but with different products or services.

Keep in mind that this list may change over time. It’s crucial to revisit it regularly to keep track of any new entrants or changes to your current competitors. For instance, a new competitor may enter the market, or an existing competitor may change their product offerings.

2. Analyze the market

Once you’ve identified your competitors, you need to study the overall market. 

This includes the market size , growth rate, trends, and customer preferences. Be sure that you understand the key drivers of demand, demographic and psychographic profiles of your target audience , and any potential market gaps or opportunities.

Conducting a market analysis can require a significant amount of research and data collection. Luckily, if you’re writing a business plan you’ll follow this process to complete the market analysis section . So, doing this research has value for multiple parts of your plan.

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3. Create a competitive framework

You’ll need to establish criteria for comparing your business with competitors. You want the metrics and information you choose to provide answers to specific questions. (“Do we have the same customers?” “What features are offered?” “How many customers are being served?”)

Here are some common factors to consider including: 

  • Market share
  • Product/service offerings or features
  • Distribution channels
  • Target markets
  • Marketing strategies
  • Customer service

4. Research your competitors

You can now begin gathering information about your competitors. Because you spent the time to explore the market and set up a comparison framework—your research will be far more focused and easier to complete.

There’s no perfect research process, so start by exploring sources such as competitor websites, social media, customer reviews, industry reports, press releases, and public financial statements. You may also want to conduct primary research by interviewing customers, suppliers, or industry experts.

You can check out our full guide on conducting market research for more specific steps.

5. Assess their strengths and weaknesses

Evaluate each competitor based on the criteria you’ve established in the competitive framework. Identify their key strengths (competitive advantages) and weaknesses (areas where they underperform).

6. Identify opportunities and threats

Based on the strengths and weaknesses of your competitors, identify opportunities (areas where you can outperform them) and threats (areas where they may outperform you) for your business. 

You can check out our full guide to conducting a SWOT analysis for more specific questions that you should ask as part of each step. 

  • How to write your competitive analysis

Once you’ve done your research, it’s time to present your findings in your business plan. Here are the steps you need to take:

1. Determine who your audience is

Who you are writing a business plan for (investors, partners, employees, etc.) may require you to format your competitive analysis differently. 

For an internal business plan you’ll use with your team, the competition section should help them better understand the competition. You and your team will use it to look at comparative strengths and weaknesses to help you develop strategies to gain a competitive advantage.

For fundraising, your plan will be shared with potential investors or as part of a bank loan. In this case, you’re describing the competition to reassure your target reader. You are showing awareness and a firm understanding of the competition, and are positioned to take advantage of opportunities while avoiding the pitfalls.

2. Describe your competitive position

You need to know how your business stacks up, based on the values it offers to your chosen target market. To run this comparison, you’ll be using the same criteria from the competitive framework you completed earlier. You need to identify your competitive advantages and weaknesses, and any areas where you can improve.

The goal is positioning (setting your business up against the background of other offerings), and making that position clear to the target market. Here are a few questions to ask yourself in order to define your competitive position:

  • How are you going to take advantage of your distinctive differences, in your customers’ eyes? 
  • What are you doing better? 
  • How do you work toward strengths and away from weaknesses?
  • What do you want the world to think and say about you and how you compare to others?

3. Visualize your competitive position

There are a few different ways to present your competitive framework in your business plan. The first is a “positioning map” and the second is a “competitive matrix”. Depending on your needs, you can use one or both of these to communicate the information that you gathered during your competitive analysis:

Positioning map

The positioning map plots two product or business benefits across a horizontal and vertical axis. The furthest points of each represent opposite extremes (Hot and cold for example) that intersect in the middle. With this simple chart, you can drop your own business and the competition into the zone that best represents the combination of both factors.

I often refer to marketing expert Philip Kohler’s simple strategic positioning map of breakfast, shown here. You can easily draw your own map with any two factors of competition to see how a market stacks up.

Competitive positioning map comparing the price and speed of breakfast options. Price sits along the y-axis and speed along the x-axis.

It’s quite common to see the price on one axis and some important qualitative factor on the other, with the assumption that there should be a rough relationship between price and quality.

Competitive matrix

It’s pretty common for most business plans to also include a competitive matrix. It shows how different competitors stack up according to the factors identified in your competitive framework. 

How do you stack up against the others? Here’s what a typical competitive matrix looks like:

Competitive matrix example where multiple business factors are being compared between your business and two competitors.

For the record, I’ve seen dozens of competitive matrices in plans and pitches. I’ve never seen a single one that didn’t show that this company does more of what the market wants than all others. So maybe that tells you something about credibility and how to increase it. Still, the ones I see are all in the context of seeking investment, so maybe that’s the nature of the game.

4. Explain your strategies for gaining a competitive edge

Your business plan should also explain the strategies your business will use to capitalize on the opportunities you’ve identified while mitigating any threats from competition. This may involve improving your product/service offerings, targeting underserved market segments, offering more attractive price points, focusing on better customer service, or developing innovative marketing strategies.

While you should cover these strategies in the competition section, this information should be expanded on further in other areas of your business plan. 

For example, based on your competitive analysis you show that most competitors have the same feature set. As part of your strategy, you see a few obvious ways to better serve your target market with additional product features. This information should be referenced within your products and services section to back up your problem and solution statement. 

  • Why competition is a good thing

Business owners often wish that they had no competition. They think that with no competition, the entire market for their product or service will be theirs. That is simply not the case—especially for new startups that have truly innovative products and services. Here’s why:

Competition validates your idea

You know you have a good idea when other people are coming up with similar products or services. Competition validates the market and the fact that there are most likely customers for your new product. This also means that the costs of marketing and educating your market go down (see my next point).

Competition helps educate your target market

Being first-to-market can be a huge advantage. It also means that you will have to spend way more than the next player to educate customers about your new widget, your new solution to a problem, and your new approach to services. 

This is especially true for businesses that are extremely innovative. These first-to-market businesses will be facing customers that didn’t know that there was a solution to their problem . These potential customers might not even know that they have a problem that can be solved in a better way. 

If you’re a first-to-market company, you will have an uphill battle to educate consumers—an often expensive and time-consuming process. The 2nd-to-market will enjoy all the benefits of an educated marketplace without the large marketing expense.

Competition pushes you

Businesses that have little or no competition become stagnant. Customers have few alternatives to choose from, so there is no incentive to innovate. Constant competition ensures that your marketplace continues to evolve and that your product offering continues to evolve with it.

Competition forces focus & differentiation

Without competition, it’s easy to lose focus on your core business and your core customers and start expanding into areas that don’t serve your best customers. Competition forces you and your business to figure out how to be different than your competition while focusing on your customers. In the long term, competition will help you build a better business.

  • What if there is no competition?

One mistake many new businesses make is thinking that just because nobody else is doing exactly what they’re doing, their business is a sure thing. If you’re struggling to find competitors, ask yourself these questions.

Is there a good reason why no one else is doing it?

The smart thing to do is ask yourself,  “Why isn’t anyone else doing it?”

It’s possible that nobody’s selling cod-liver frozen yogurt in your area because there’s simply no market for it. Ask around, talk to people, and do your market research. If you determine that you’ve got customers out there, you’re in good shape.

But that still doesn’t mean there’s no competition.

How are customers getting their needs met?

There may not be another cod-liver frozen yogurt shop within 500 miles. But maybe an online distributor sells cod-liver oil to do-it-yourselfers who make their own fro-yo at home. Or maybe your potential customers are eating frozen salmon pops right now. 

Are there any businesses that are indirect competitors?

Don’t think of competition as only other businesses that do exactly what you do. Think about what currently exists on the market that your product would displace.

It’s the difference between direct competition and indirect competition. When Henry Ford started successfully mass-producing automobiles in the U.S., he didn’t have other automakers to compete with. His competition was horse-and-buggy makers, bicycles, and railroads.

Do a competitive analysis, but don’t let it derail your planning

While it’s important that you know the competition, don’t get too caught up in the research. 

If all you do is track your competition and do endless competitive analyses, you won’t be able to come up with original ideas. You will end up looking and acting just like your competition. Instead, make a habit of NOT visiting your competition’s website, NOT going into their store, and NOT calling their sales office. 

Focus instead on how you can provide the best service possible and spend your time talking to your customers. Figure out how you can better serve the next person that walks in the door so that they become a lifetime customer, a reference, or a referral source.

If you focus too much on the competition, you will become a copycat. When that happens, it won’t matter to a customer if they walk into your store or the competition’s because you will both be the same.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Content Author: Tim Berry

Tim Berry is the founder and chairman of Palo Alto Software , a co-founder of Borland International, and a recognized expert in business planning. He has an MBA from Stanford and degrees with honors from the University of Oregon and the University of Notre Dame. Today, Tim dedicates most of his time to blogging, teaching and evangelizing for business planning.

competition and competitive edge in business plan

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How to create a competitive analysis (with examples)

Team Asana contributor image

Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. In this guide, we’ll outline how to do a competitive analysis and explain how you can use this marketing strategy to improve your business.

Whether you’re running a business or playing in a football game, understanding your competition is crucial for success. While you may not be scoring touchdowns in the office, your goal is to score business deals with clients or win customers with your products. The method of preparation for athletes and business owners is similar—once you understand your strengths and weaknesses versus your competitors’, you can level up. 

What is a competitive analysis?

Competitive analysis involves identifying your direct and indirect competitors using research to reveal their strengths and weaknesses in relation to your own. 

[inline illustration] What is a competitive analysis (infographic)

Direct competitors market the same product to the same audience as you, while indirect competitors market the same product to a different audience. After identifying your competitors, you can use the information you gather to see where you stand in the market landscape. 

What to include in a competitive analysis

The purpose of this type of analysis is to get a competitive advantage in the market and improve your business strategy. Without a competitive analysis, it’s difficult to know what others are doing to win clients or customers in your target market. A competitive analysis report may include:

A description of your company’s target market

Details about your product or service versus the competitors’

Current and projected market share, sales, and revenues

Pricing comparison

Marketing and social media strategy analysis

Differences in customer ratings

You’ll compare each detail of your product or service versus the competition to assess strategy efficacy. By comparing success metrics across companies, you can make data-driven decisions.

How to do a competitive analysis

Follow these five steps to create your competitive analysis report and get a broad view of where you fit in the market. This process can help you analyze a handful of competitors at one time and better approach your target customers.

1. Create a competitor overview

In step one, select between five and 10 competitors to compare against your company. The competitors you choose should have similar product or service offerings and a similar business model to you. You should also choose a mix of both direct and indirect competitors so you can see how new markets might affect your company. Choosing both startup and seasoned competitors will further diversify your analysis.

Tip: To find competitors in your industry, use Google or Amazon to search for your product or service. The top results that emerge are likely your competitors. If you’re a startup or you serve a niche market, you may need to dive deeper into the rankings to find your direct competitors.

2. Conduct market research

Once you know the competitors you want to analyze, you’ll begin in-depth market research. This will be a mixture of primary and secondary research. Primary research comes directly from customers or the product itself, while secondary research is information that’s already compiled. Then, keep track of the data you collect in a user research template .

Primary market research may include: 

Purchasing competitors’ products or services

Interviewing customers

Conducting online surveys of customers 

Holding in-person focus groups

Secondary market research may include:

Examining competitors’ websites

Assessing the current economic situation

Identifying technological developments 

Reading company records

Tip: Search engine analysis tools like Ahrefs and SEMrush can help you examine competitors’ websites and obtain crucial SEO information such as the keywords they’re targeting, the number of backlinks they have, and the overall health of their website. 

3. Compare product features

The next step in your analysis involves a comparison of your product to your competitors’ products. This comparison should break down the products feature by feature. While every product has its own unique features, most products will likely include:

Service offered

Age of audience served

Number of features

Style and design

Ease of use

Type and number of warranties

Customer support offered

Product quality

Tip: If your features table gets too long, abbreviate this step by listing the features you believe are of most importance to your analysis. Important features may include cost, product benefits, and ease of use.

4. Compare product marketing

The next step in your analysis will look similar to the one before, except you’ll compare the marketing efforts of your competitors instead of the product features. Unlike the product features matrix you created, you’ll need to go deeper to unveil each company’s marketing plan . 

Areas you’ll want to analyze include:

Social media

Website copy

Press releases

Product copy

As you analyze the above, ask questions to dig deeper into each company’s marketing strategies. The questions you should ask will vary by industry, but may include:

What story are they trying to tell?

What value do they bring to their customers?

What’s their company mission?

What’s their brand voice?

Tip: You can identify your competitors’ target demographic in this step by referencing their customer base, either from their website or from testimonials. This information can help you build customer personas. When you can picture who your competitor actively targets, you can better understand their marketing tactics. 

5. Use a SWOT analysis

Competitive intelligence will make up a significant part of your competitor analysis framework, but once you’ve gathered your information, you can turn the focus back to your company. A SWOT analysis helps you identify your company’s strengths and weaknesses. It also helps turn weaknesses into opportunities and assess threats you face based on your competition.

During a SWOT analysis, ask yourself:

What do we do well?

What could we improve?

Are there market gaps in our services?

What new market trends are on the horizon?

Tip: Your research from the previous steps in the competitive analysis will help you answer these questions and fill in your SWOT analysis. You can visually present your findings in a SWOT matrix, which is a four-box chart divided by category.

6. Identify your place in the market landscape

The last step in your competitive analysis is to understand where you stand in the market landscape. To do this, you’ll create a graph with an X and Y axis. The two axes should represent the most important factors for being competitive in your market. 

For example, the X-axis may represent customer satisfaction, while the Y-axis may represent presence in the market. You’ll then plot each competitor on the graph according to their (x,y) coordinates. You’ll also plot your company on this chart, which will give you an idea of where you stand in relation to your competitors. 

This graph is included for informational purposes and does not represent Asana’s market landscape or any specific industry’s market landscape. 

[inline illustration] Identify your place in the market landscape (infographic)

Tip: In this example, you’ll see three companies that have a greater market presence and greater customer satisfaction than yours, while two companies have a similar market presence but higher customer satisfaction. This data should jumpstart the problem-solving process because you now know which competitors are the biggest threats and you can see where you fall short. 

Competitive analysis example

Imagine you work at a marketing startup that provides SEO for dentists, which is a niche industry and only has a few competitors. You decide to conduct a market analysis for your business. To do so, you would:

Step 1: Use Google to compile a list of your competitors. 

Steps 2, 3, and 4: Use your competitors’ websites, as well as SEO analysis tools like Ahrefs, to deep-dive into the service offerings and marketing strategies of each company. 

Step 5: Focusing back on your own company, you conduct a SWOT analysis to assess your own strategic goals and get a visual of your strengths and weaknesses. 

Step 6: Finally, you create a graph of the market landscape and conclude that there are two companies beating your company in customer satisfaction and market presence. 

After compiling this information into a table like the one below, you consider a unique strategy. To beat out your competitors, you can use localization. Instead of marketing to dentists nationwide like your competitors are doing, you decide to focus your marketing strategy on one region, state, or city. Once you’ve become the known SEO company for dentists in that city, you’ll branch out. 

[inline illustration] Competitive analysis framework (example)

You won’t know what conclusions you can draw from your competitive analysis until you do the work and see the results. Whether you decide on a new pricing strategy, a way to level up your marketing, or a revamp of your product, understanding your competition can provide significant insight.

Drawbacks of competitive analysis

There are some drawbacks to competitive analysis you should consider before moving forward with your report. While these drawbacks are minor, understanding them can make you an even better manager or business owner. 

Don’t forget to take action

You don’t just want to gather the information from your competitive analysis—you also want to take action on that information. The data itself will only show you where you fit into the market landscape. The key to competitive analysis is using it to problem solve and improve your company’s strategic plan .

Be wary of confirmation bias

Confirmation bias means interpreting information based on the beliefs you already hold. This is bad because it can cause you to hold on to false beliefs. To avoid bias, you should rely on all the data available to back up your decisions. In the example above, the business owner may believe they’re the best in the SEO dental market at social media. Because of this belief, when they do market research for social media, they may only collect enough information to confirm their own bias—even if their competitors are statistically better at social media. However, if they were to rely on all the data available, they could eliminate this bias.

Update your analysis regularly

A competitive analysis report represents a snapshot of the market landscape as it currently stands. This report can help you gain enough information to make changes to your company, but you shouldn’t refer to the document again unless you update the information regularly. Market trends are always changing, and although it’s tedious to update your report, doing so will ensure you get accurate insight into your competitors at all times. 

Boost your marketing strategy with competitive analysis

Learning your competitors’ strengths and weaknesses will make you a better marketer. If you don’t know the competition you’re up against, you can’t beat them. Using competitive analysis can boost your marketing strategy and allow you to capture your target audience faster.

Competitive analysis must lead to action, which means following up on your findings with clear business goals and a strong business plan. Once you do your competitive analysis, you can use the templates below to put your plan into action.

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What Is a Competitive Advantage?

  • How It Works
  • How To Build It
  • Competitive vs. Comparative Advantage

The Bottom Line

  • Business Essentials

Competitive Advantage Definition With Types and Examples

competition and competitive edge in business plan

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

competition and competitive edge in business plan

Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals. Competitive advantages are attributed to a variety of factors including cost structure, branding , the quality of product offerings, the  distribution network , intellectual property, and customer service.

Key Takeaways

  • Competitive advantage is what makes an entity's products or services more desirable to customers than that of any other rival.
  • Competitive advantages can be broken down into comparative advantages and differential advantages.
  • Comparative advantage is a company's ability to produce something more efficiently than a rival, which leads to greater profit margins.
  • A differential advantage is when a company's products are seen as both unique and of higher quality, relative to those of a competitor.

Investopedia / Michela Buttignol

Understanding Competitive Advantage

Competitive advantages generate greater value for a firm and its shareholders because of certain strengths or conditions. The more sustainable the competitive advantage, the more difficult it is for competitors to neutralize the advantage. The two main types of competitive advantages are comparative advantage and differential advantage.

A comparative advantage is when a firm can produce products more efficiently and at a lower cost than its competitors.

A differential advantage is when a firm's products or services differ from its competitors' offerings and are seen as superior. Advanced technology, patent-protected products or processes, superior personnel, and strong brand identity are all drivers of differential advantage. These factors support wide margins and large market shares.

For example, Apple is famous for creating innovative products, such as the iPhone, and supporting its market leadership with savvy marketing campaigns to build an elite brand. Another example is major drug companies. They can market branded drugs at high price points because they are protected by patents.

The term "competitive advantage" traditionally refers to the business world, but can also be applied to a country, organization, or even a person who is competing for something.

How To Build a Competitive Advantage

To build a competitive advantage, a company can use one of three main methods:

  • Cost: Provide offerings at the lowest price
  • Differentiation: Provide offerings that are superior in quality, service, or features
  • Specialization: Provide offerings narrowly tailored to a focused market

Competing on price can be effective, but if you slash prices too much you risk decreasing profit margins to an untenable level. Many firms opt instead to differentiate themselves in other ways, which helps preserve or expand their profit margin.

Benefits of a Competitive Advantage

When a company creates a durable competitive advantage, it sets itself apart from the competition and provides value to customers as well as stakeholders. By producing a desirable product or service that is better or more cost-effective than its competitors,' the company can make more sales, generate more revenue, and enjoy greater profits.

Strategies to Build a Competitive Advantage

To build a competitive advantage, a company must know what sets it apart from its competitors and then focus its message, service, and products with that difference in mind. Here are several strategies companies use to build a competitive advantage:

  • Research the market : Market research helps a company identify and define its target market, which can guide it in developing the most effective advantage.
  • Identify strengths : A company can find its unique strengths, especially relative to competitors, by reviewing products, services, features, positioning, and branding.
  • Evaluate finances : Companies can take a close look at their financial performance to spot profit centers and areas of stability, using financial statements and ratios.
  • Review operations : How efficient is a company's operations? Where is it effective, and where is there room for improvement? Consider customer service as well as production and supply chain management.
  • Consider human resources : The talent a company can attract as employees and leadership can make an important difference in the success of the business. Evaluating company culture, hiring, and staffing practices can help.

Competitive Advantage vs. Comparative Advantage

A firm's ability to produce a good or service more efficiently than its competitors, which leads to greater profit margins, creates a comparative advantage. Rational consumers will choose the cheaper of any two perfect substitutes offered. For example, a car owner will buy gasoline from a gas station that is 5 cents cheaper than other stations in the area. For imperfect substitutes, like Pepsi versus Coke, higher margins for the lowest-cost producers can eventually bring superior returns.

Economies of scale , efficient internal systems, and geographic location can also create a comparative advantage.

Comparative advantage does not imply a better product or service. It only shows the firm can offer a product or service of the same value at a lower price.

For example, a firm that manufactures a product in China may have lower labor costs than a company that manufactures in the U.S., so it can offer an equal product at a lower price. In the context of international trade economics, opportunity cost determines comparative advantages. 

Amazon ( AMZN ) is an example of a company focused on building and maintaining a comparative advantage. The e-commerce platform has a level of scale and efficiency that is difficult for retail competitors to replicate, allowing it to rise to prominence largely through price competition.

How Do I Know If a Company Has a Competitive Advantage?

If a business can increase its market share through increased efficiency or productivity, it would have a competitive advantage over its competitors.

How Can a Company Increase Its Competitive Advantage?

Lasting competitive advantages tend to be things competitors cannot easily replicate or imitate. Warren Buffet calls sustainable competitive advantages economic moats , which businesses can figuratively dig around themselves to entrench competitive advantages. This can include strengthening one's brand, raising barriers to new entrants (such as through regulations), and the defense of intellectual property.

Why Do Larger Companies Often Have Competitive Advantages?

Competitive advantages that accrue from economies of scale typically refer to supply-side advantages, such as the purchasing power of a large restaurant or retail chain. But advantages of scale also exist on the demand side—they are commonly referred to as  network effects . This happens when a service becomes more valuable to all of its users as the service adds more users. The result can often be a winner-take-all dynamic in the industry.

How Is Competitive Advantage Different From Comparative Advantage?

Comparative advantage mostly refers to international trade. It posits that a country should focus on what it can produce and export relatively the cheapest—thus if one country has a competitive advantage in producing both products A & B, it should only produce product A if it can do it better than B and import B from some other country.

A company's competitive advantage is the way it excels compared to its rivals. This advantage may be through cost leadership, differentiation, or focus. Identifying a company's competitive advantage helps show how it is positioned to be more successful than its competitors, creating more revenue and generating greater profits.

Young African Leaders Initiative. " Action Your Business Growth: The Importance of Knowing Your Competitive Advantage ."

U.S. Small Business Administration. " Market Research and Competitive Analysis ."

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How to Identify Your Competitive Strengths for Your Business Plan If you don't know what gives your new business an edge in the marketplace, here's how to figure out your unique strengths and tell others about them.

By Entrepreneur Staff • Jan 8, 2015

In their book Write Your Business Plan , the staff of Entrepreneur Media offer an in-depth understanding of what's essential to any business plan, what's appropriate for your venture, and what it takes to ensure success. In this edited excerpt, the authors explain just how important it is to identify what sets you apart and gives your business its competitive edge.

As a business owner, you're not alone, even if you own a one-person, homebased business. You also have your competition to worry about. And your financial backers will worry about your competition, too. Even if you truly are in the rare position of addressing a brand-new market where no competition exists, most experienced people reading your business plan will have questions about companies they suspect may be competitors. For these reasons, you should devote a special section of your business plan to identifying your competitors.

If you had to name two competitors in the athletic shoe market, you'd quickly come up with Nike and Reebok. But these by far aren't the only competitors in the sneaker business. They're just two of the main ones, and depending on the business you're in, the other ones may be more important. If you sell soccer shoes, for instance, Adidas is a bigger player than either of the two American firms. And smaller firms such as Etonic, New Balance and Saucony also have niches where they are comparatively powerful.

You can develop a list of competitors by talking to customers and suppliers, checking with industry groups and reading trade journals. But it's not enough to simply name your competitors—you need to know their manner of operation, how they compete.

Does a competitor stress a selective, low-volume, high-margin business, or do they emphasize sales growth at any cost, taking every job that comes along, whether or not it fits any coherent scheme or offers an attractive profit? Knowing this kind of information about competitors can help you identify their weaknesses as well as their names.

What makes you better?

This is one of the most important sections of your plan. You need to convince anyone thinking of joining with your company, as an investor or in another way, that you offer something obviously different and better than what's already available. Typically, this is called your competitive advantage, but it's not an overstatement to call it your company's reason for being.

Your competitive edge may lie in any of the your company's key distincitions, including cost, features, service, quality, distribution and so forth. Or it could be something totally different. The success of a retail convenience store located on an interstate highway, for instance, might depend almost entirely on how close it is to an exit ramp. Compare what you have to offer to that of your competitors, including your online competitors. Look for your competitive edge without knocking or denigrating your competition—your goal is not to say they aren't good but that you are a better choice—and explain why.

To figure out your competitive advantage, start by asking yourself these two critical questions:

1. Why do people buy from me instead of my competitors? Think about this question in terms of product characteristics. Ask your customers why they buy from you. Ask noncustomers why they don't. Ask suppliers, colleagues and anybody you can find why they're choosing you over a competitor. Use online surveys, read reviews on places like Yelp or Angie's List, and get a feel for what people like and don't like about the places that do what you do ... or are planning to do.

2. What makes me different and, I hope, better? Your competitive advantage isn't quite as important if your company is going to operate in the beginning stages of a new industry. When interest and sales in a new field are growing fast, you can survive and prosper even if you aren't clearly better than the rest. If, however, you plan to take market share away from established competitors in a mature industry, then competitive edge is all-important. Without a convincing case for being very different and much better than the rest, your business plan will have a hard time swaying anybody.

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How to Write the Competitor Analysis Section of the Business Plan

Writing The Business Plan: Section 4

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

competition and competitive edge in business plan

The competitor analysis section can be the most difficult section to compile when writing a business plan because before you can analyze your competitors, you have to investigate them. Here's how to write the competitor analysis section of the business plan.

First, Find Out Who Your Competitors Are

If you're planning to start a small business that's going to operate locally, chances are you already know which businesses you're going to be competing with. But if not, you can easily find out by doing an internet search for local businesses, looking in the online or printed local phone book, or even driving around the target market area. 

Your local business may also have non-local competitors that you need to be aware of.

If you're selling office supplies, for instance, you may also have to compete with big-box retailers within a driving distance of several hours and companies that offer office supplies online. You want to make sure that you identify all your possible competitors at this stage.

Then Find Out About Them

You need to know:

  • what markets or market segments your competitors serve;
  • what benefits your competitors offer;
  • why customers buy from them;
  • as much as possible about their products and/or services, pricing, and promotion.

Gathering Information for Your Competitor Analysis

A visit is still the most obvious starting point - either to the brick and mortar store or to the company's website. Go there, once or several times, and look around. Watch how customers are treated. Check out the prices.

You can also learn a fair bit about your competitors from talking to their customers and/or clients - if you know who they are. Other good "live" sources of information about competitors include a company's vendors or suppliers and a company's employees. They may or may not be willing to talk to you, but it's worth seeking them out and asking.

And watch for trade shows that your competitors may be attending. Businesses are there to disseminate information about and sell their products or services; attending and visiting their booths can be an excellent way to find out about your competition.

You'll also want to search for the publicly available information about your competitors. Online publications, newspapers, and magazines may all have information about the company you're investigating for your competitive analysis. Press releases may be particularly useful. 

Once you've compiled the information about your competitors, you're ready to analyze it. 

Analyzing the Competition

Just listing a bunch of information about your competition in the competitor analysis section of the business plan misses the point. It's the analysis of the information that's important.

Study the information you've gathered about each of your competitors and ask yourself this question: How are you going to compete with that company?

For many small businesses, the key to competing successfully is to identify a market niche where they can capture a  specific target market  whose needs are not being met.

  • Is there a particular segment of the market that your competition has overlooked?
  • Is there a service that customers or clients want that your competitor does not supply? 

The goal of your competitor analysis is to identify and expand upon your competitive advantage - the benefits that your proposed business can offer the customer or client that your competition can't or won't supply.

Writing the Competitor Analysis Section

When you're writing the business plan, you'll write the competitor analysis section in the form of several paragraphs. 

The first paragraph will outline the competitive environment, telling your readers who your proposed business's competitors are, how much of the market they control and any other relevant details about the competition.

The second and following paragraphs will detail your competitive advantage, explaining why and how your company will be able to compete with these competitors and establish yourself as a successful business.

Remember; you don't have to go into exhaustive detail here, but you do need to persuade the reader of your business plan that you are knowledgeable about the competition and that you have a clear, definitive plan that will enable your new business to successfully compete.

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10 Proven Strategies to Gain a Competitive Edge for Your Business in 2022

Saurabh

Small businesses, worldwide, find themselves losing their traditional competitive advantages with globalization and proliferation of internet in our daily lives. These businesses risk falling into the commodity trap if they do not strategize now to gain a competitive edge through differentiation.

You may think it does not apply to your business.

You would be wrong.

As a small business, your competition is not just the neighborhood small business, but also the Googles and Amazons of this world, and the tech-tools available to everyone.

How long before Amazon or Google start selling what you sell? How long before your local competitor will optimize their supply chain by utilizing Alibaba?

It is sooner than you may think.

In a world, where there are so many options for the consumer, making a prospect choose the solution you offer can be quite difficult. Today, every other business is trying its level best to gain a competitive edge over the other.

But how do you get this competitive edge over other businesses?

Well, here’s the thing - there’s no magic wand that gives your business a competitive edge. Instead, it is all about connecting your business to the right audience with the right message.

And the key to doing this is execute the 10 strategies we have outlined in this article.

Finding the right execution model will take experimentation. Yes, there will be failures on the way. But as long as you have your basics in place, and you persevere, you will find the model that works for you.

What is a competitive edge?

86% of the customers check out multiple competitors. It is quite simple then. You need to give your audience a reason to choose you. This reason is your competitive edge.

That reason is what will differentiate you from your competitors. You need to find a unique mix of values to offer to your audience. Once you find that, your business growth will depend on marketing strategies and customer retention.

Gaining a competitive edge can help you in reaping a lot of benefits. Here’s why a competitive edge is important:

  • Attract more new customers.
  • Gain the customer’s loyalty.
  • Stand out of the competition and shine.
  • Maximizing the revenue by expanding the customer base.

So, without further ado, here are the 10 strategies to gain a competitive edge for your small business. Please note, this is not a magic wand, but an effort to guide you in the right direction. You may be doing all or some of it, and that is a great thing, but it never hurts to revisit the concepts.

1. Build a unique online presence

Creating a solid digital presence is no more an option for businesses. With digitalization, every business is moving online. By creating digital footprints a business can reach a wider audience. Plus, social media can be used to share unique thoughts and ideas that can help in standing out.

Most importantly, online marketing is cheaper than traditional marketing. And, as a small business, you can save a lot of money and use it somewhere else.

With the proliferation of social platforms and search engines, it is not just about spending money on ads, or building a website. It is as much about engaging with the right audience via great content and distribution.

You can use easy website building tools to get you up and running in no time.

2. Leverage the content

Content is king! No business in the world can survive without content.

Use content marketing to reach out to your customers. A killer brand story will help you to position yourself in the market. Share your mission and vision with your audience and let them know what you are doing or offering.

Educate your audience and keep posting content. It will help in creating engagement and gaining the trust of the audience, and also create a competitive edge over others.

Distribution of content is as important as creating content. Email marketing is a powerful tool, in addition to social media, to distribute content effectively.

3. Identify and segment your audience

Segmenting will help your business to build and market your product/service effectively.

If you keep on targeting everyone, you will end up converting no one.

You need to properly analyze the market and identify your target audience. This way you will be able to direct your efforts in the right direction. Then you need to find out ways, to how you can reach out to them and tell them about your offer.

Tools like Deskera CRM let you segment audiences and contacts easily and dynamically with rules.

Go inch wide-mile deep. Stay focused on solving problems for selected personas through your product/offerings and direct your marketing efforts towards the same audience.

4. UX / Design / Visuals cannot be ignored

Visuals are important to gain positive attention.

You need an amazing logo, website, and social media handles to establish your brand. The content should be backed up by killer designs to elevate the brand. Get a proper brand color, theme, etc., and start designing banners, logos, and all.

UX should constantly evolve . Always be on the look out for making things easier for your users. Even if they don't find it hard today, you can bet your money that your competitor is trying real hard to build an even easier way. Don't let them win.

5. Incorporate customer feedback

Take into account the constructive feedback and make changes accordingly.

81% of the companies think customer experience is a competitive differentiator. Understanding your customer's psychology will help you gain the edge here.

Ask your customers for feedback and the ways you can improve your offer. Then, identify and implement the processes to improve your business. This will also make your customers feel wanted and help in making quick and efficient changes in the business.

6. Turn customers into evangelists

90% of people use customer service as the deciding factor to choose a brand.

Focus on building a deeper and stronger relationship with the customers. Provide them value and make sure to exceed their expectations. This will help in retaining the existing customers and attracting new customers.

Whether you are doing this or not can be easily measured with NPS (Net Promotor Score) surveys. One way to exceed customer expectations is to provide world class support.

Encourage your customers to leave reviews on sites like G2, Capterra, Trustpilot among others every time you solve a customer issue. This can greatly boost your perception as customer oriented business.

7. Experiment & innovate continuously

Innovation is the key to stand out from the competition. Experimentation leads to innovations.

Make sure to adapt as per the changes in the business environment. Keep on innovating and coming up with the new  ways of doing things. This will help in gaining a competitive edge over other businesses.

Innovation is not limited to technology.

You can innovate with stuff like what messaging and tone you use to communicate with your customers. Even the simplest changes, like changing the color of a button, can help boost conversion rates.

Here is a comprehensive marketing guide with 75 tips to help you get started.

8. Become an authority

Be the go-to reference for your target audiences.

Once you have identified your audience and their needs, make sure you create content that solves their problems, answers their questions and is all about them.

Take part in events/conferences attended by your target personas. Speak to them about you/your business is solving their problems. Be heard.

Build a training course for your prospective customers. help them get better, and cement your standing and authority.

9. Test your price elasticity

Don't let your product or offering be commoditized.

You are offering a unique value to your users through your products and offerings. Know what you are worth, and the only way to do that is to experiment with how much the market is willing to pay.

While it is never advisable to get into price wars, a timely discount offer on top of your prestige pricing can create the right desire in your prospects to part with their cash.

10. Use IT solutions to remove process bottlenecks

Technology is your friend. If you let it be. Unlocking your team's productivity is a no-brainer. Still, complete digitalization of business processes is something that 80% of small businesses have not even thought about.

How does that work out for them? How will it work out for you?

Not only are you competing with possibly a bigger company with deeper pockets, but also they are doing things faster than you. You know how these stories end.

Unless you level the playing field.

You may not have as much cash as your biggest competitor, but you can work better, smarter, and faster. And technology adoption, digitalization, is the way to do that.

Key Takeaways

The better you know your customers and their pain points, the better solution you can offer. This way, you can not just help them in the best possible way but also gain loyal customers and generate more revenue for your business. Plus, it will help in gaining a competitive edge.

Don't let your product/offering become a commodity. Instead, try to provide an exceptional offer and exceed the customer’s expectations. Focus on creating a brand that has something unique to offer.

Here’s a quick summary of the 10 strategies we covered to give your business the competitive edge:

  • Build a unique online presence
  • Leverage the content
  • Identify and segment your audience
  • UX / Design / Visuals cannot be ignored
  • Incorporate customer feedback
  • Turn customers into evangelists
  • Experiment & innovate continuously
  • Become an authority
  • Test your price elasticity
  • Use IT solutions to remove process bottlenecks

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How to Write a Competitive Edge for Business

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How to write a preface for a business plan, how to write a marketing analysis report.

  • What Factors Make the Difference Between a Good Business Plan & an Excellent One?
  • Definition of a SWOT Analysis

Establishing your competitive edge is an important part of the feasibility study you do prior to writing your startup business plan or your year-end strategic planning for next year's business expansion. It entails research into your competition, how their products differs from yours, how their operations differ from yours and how their marketing differs from yours. Your research should also include the demographics and buying habits of your target customer so you can identify or create your competitive advantage.

SWOT Analysis

List the qualities of your product, business operations, marketing and customer base. Then list how those qualities compare to your competition and what you can do to best that competitor. Once you have a list of qualities that give you a competitive advantage, perform a SWOT analysis, which is taking each point and determining the strengths, weaknesses, opportunities and threats associated with that product, operational system, marketing campaign or customer base.

Writing a description of your competitive edge, and how you will achieve and maintain it, may require revision and refining of your initial vision. This is why you put in research and evaluation time to identify holes in your planning and fantasies in your decision making prior to writing. Competitive edge is an elusive reality. Self-deception destroys many businesses because it leads you to think you have enough money, time, product superiority, operational superiority and marketing savvy to blow your competition out of the water.

A discussion of your competitive edge can be part of the section of your business plan that deals with the description of your company, or it can be the introduction to your marketing plan. It is also useful as a basis for your brochures, website copy and marketing presentations. Describe your product, and compare its strengths and weaknesses with respect to the competition's products. Then, indicate how your company compares to the competition and what opportunities or threats you have identified. Describe your target customers, their needs and buying habits, and why your product appeals to them. Then indicate your marketing plans for targeting and attracting those customers by educating them about the superiority of your product and services relative to those of your competition.

Reality Check

Always get an outside opinion before you deliver your description to an investor, bank or customer. Organizations such as the Service Corps of Retired Executives, known as SCORE, can provide you with unbiased advice regarding the reality of your assumptions so you have the opportunity to revise your description of your competitive edge, if needed. A clear and factual vision is one of the best competitive edges you can develop.

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Victoria Duff specializes in entrepreneurial subjects, drawing on her experience as an acclaimed start-up facilitator, venture catalyst and investor relations manager. Since 1995 she has written many articles for e-zines and was a regular columnist for "Digital Coast Reporter" and "Developments Magazine." She holds a Bachelor of Arts in public administration from the University of California at Berkeley.

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Business plan tips competitive advantage

Business plan tips: how to identify your competitive advantage

Morgan Beall October 23, 2017

                        Morgan Beall October 23, 2017

At Vancity, we see hundreds of business plans each year from new and aspiring entrepreneurs. And from that experience, we know there are five areas in the business plan that entrepreneurs may not spend enough time on: business objective , SWOT analysis , cash flow projection , competitive advantage and market potential .

In this series, I’m going to share some tips on each of these five areas to get your business plan in top shape. In this post, I’ll cover ways to identify your competitive advantage.

Competitive advantage

What makes your business special? What are you doing differently than your competitors? Why should customers choose your product or service? These are the questions you should ask yourself when determining your competitive advantage. It’s something that often gets overlooked in many business plan s , but understanding your competitive advantage is a huge factor in starting and running a successful business.

https://youtube.com/watch?v=Nid9Frjiz3w

These three steps will help you realize what sets you apart from the rest:

1. Identify your competitors

Start by making a list of your direct and indirect competitors. Not sure who they are? Direct competitors are businesses that satisfy a similar need that you fulfill. Try Google searches and check online business listings in your area. If you are planning on setting up a physical location, walk the community around where your business will be. Even if there don’t appear to be other businesses directly competing with you, there are always other businesses competing for your customer’s time and money. Ask yourself who they are and what products or services are they selling?

2. Find their strengths and weaknesses

Identify what your competitors are doing right. Do a little research to determine what hooks people on their product or service. Next, identify what they’re doing wrong. What’s keeping people from shopping with them? What turns customers off? Make time in your calendar to observe and take notes, or go online and check out website, product and service reviews and see what past customers have had to say.

3. Figure out your “special ingredient”

Lastly, use the information you learned about your competitors to determine your own “special ingredient.” What makes your business stand out? Think about how your values align with your audience, your branding, story, and who you are as a business owner. Consider your customer service, the quality of your products, and where you source your materials from. You may have one very obvious special ingredient, or you may find you have a few special ingredients.

In essence, your competitive advantage is a compelling argument for why a customer should buy your product or service over someone else’s. It’s a vital part of your business plan that helps a financial institution, and your future customers, decide to invest in YOU.

Looking for more support?

Looking for more support to help you complete your business plan? Find out when our next Each One, Grow One small business workshop is happening. The workshop is offered free for members and non-members, and are a great starting place to create your perfect business plan.

Related posts

Business plan tips: how to clarify your business objective, business plan tips: why you need a swot analysis.

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  • Business plan tips: how to figure out your market potential

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What is a Competitive Advantage? Explained with Examples

The Competitive Analysis Kit

Free Competitive Analysis Kit

Aayushi Mistry

  • December 12, 2023

Competitive Advantages for Business Plan

Competitive advantages are the strengths and opportunities that you have over your competition.

It includes all the factors that help you stand out from your competition. It is also the factor of seeing which your target audiences may decide to go with your product/service over your competitors.

Depending on your industry, there can be many other advantages. However, eventually, it is the factor that earns you more sales and gives you a surplus in profit.

What is a Competitive Advantage?

Competitive advantages are the strengths and opportunities that you have over your competition. It is an attribute that allows a company to achieve superior profits compared to its rivals and generates more value for the company, customers, and shareholders.

11 Common Competitive Advantage Examples

Strong Branding is one of the strongest sustainable competitive advantages. A lot goes into making a brand like building customer relationships, quality service/product, time, and money.

But when the company is identified as a brand in the market, it brings you a positional advantage. And at the same time, your sales become easier and wider.

2. Network Effect

The network effect happens when the value of a product or service depends on the number of its users.

In a positive network effect, the more people use it, the more valuable the product becomes. Once the user base reaches a critical mass, it’s extremely hard for anyone else to achieve the same position.

Scale can give companies a sustainable advantage in several ways. For example, in the retail industry, large chains can use their scale to buy merchandise at low prices unavailable to their smaller competitors.

4. Customer Lock-in

Some businesses make products or services that have very high switching costs for customers. For example, enterprise automation software such as ERP systems is so tightly integrated with critical customer functions that changing an ERP vendor is unthinkable.

5. Patents/Intellectual Property

Patents are essentially a temporary monopoly granted by the governments to stimulate risky R&D. Example: biotech and pharmaceutical companies.

6. Know-how/Monopolies

If a critical enabling element can be kept secret, it can become a source of sustainable advantage.

Competitive Advantage Examples

7. Economies of Scale

The basic tenet of economies of scale is that the cost per unit declines as output increases. The lower cost per unit is largely driven by the presence of fixed costs within the business’s cost curve.

8. Exclusive Access to a resource

Exclusive or near-exclusive access to valuable resources can give a sustainable advantage. For example, China currently provides nearly 95% of the world’s rare earth metals.

9. Exclusive License

Sometimes governments grant exclusive licenses to businesses . For example, Stepan is the only company in the US that is legally allowed to import coca leaves and extract cocaine from them.

10. Cost Advantage

Cost advantage can be achieved through economies of scale. This makes it difficult for competitors to match the low prices.

11. Adapting Product Lines

For products that continuously evolve, many tech companies could fit in this category.

competition and competitive edge in business plan

Want to Perform Competitive Analysis for your Business?

Discover your competition’s secrets effortlessly with our user-friendly and Free Competitor Analysis Generator!

How do I know if a company has a Competitive Advantage?

During competitive analysis , you must have come across a few factors where you stand out from your competitors. If these unique factors bring you any strength or opportunity, then those advantages are valuable. And only then, they can help you thrive.

For example, if you have a larger team than your competitor, then it is a competitive advantage. But you also need to look closer and see how this is bringing you any profit. Is this advantage helping you bring more business? Is this advantage helping you serve more customers/clientele? Is this advantage making a positive impact on your branding? If yes, then it is bringing you value. Hence, it is valuable.

Other than that, there are a few different perceptions to look at your competitive advantage:

Valuable competitive advantage

Is your Competitive Advantage Sustainable?

Sustainable competitive advantages are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long-term position over competitors.

In this case, you have an advantage that your competition can not easily catch up with. It can include having new features for your service/products, initiating new sales and marketing strategies , or introducing new technology. This advantage is simply intuitive. It is so much like a race- Looking at the current situation, the industry knows what is the next step. But whoever implements it first has an advantage.

For example, Apple. Inc had this advantage when they released AirPods. That step was intuitive and groundbreaking and sustainable until their competitors had a similar product.

Is your Competitive Advantage Replaceable?

You may have a great advantage. But you need to know if that is replaceable. For example, people who still don’t use AirPods, still have traditional earphones that work equally well. In fact, you will find a lot of people who would prefer earphones over air pods. In that case, having air pods as an advantage is a replaceable advantage.

Similarly, you may have a large team to cater to your target market and your company. But at the same time, if your competitor can invest in heavy technology and innovation to do the same work, then they have a replaceable advantage.

Is your Competitive Advantage Strategic?

Such an advantage is mostly seen in the R&D department, sales, and marketing as well as in operations.

Is your Competitive Advantage Rare?

In these cases, your competition will not have this feature in their product/service or business. A lot of times, such an advantage lies in the way you operate. It can include having unique raw materials, a unique team management system, quicker transportation, a better-developing team, and so on and so forth. Having a rare advantage can help you become superior sooner. And usually, having a rare advantage is like having that secret ingredient in the recipe-Something, that no one can get a hack of.

You can learn these different perspectives by studying your competition analysis with a detailed overview, gaining better knowledge of the market, brainstorming with your team, and being intuitive with respect to your business.

Steps to derive Competitive Advantages

  • Determine the right competition
  • Understand your market situation and your position in it
  • SWOT Analysis
  • Porter’s Five Forces
  • Strategic Group Analysis
  • Growth-Share Matrix
  • Perceptual Mapping
  • Figure out the points where you stand out from your competition.
  • Those stand-alone points are your competitive advantages.

A table for listing your Competitive Advantages:

Add competitive advantage to your business plan.

Your competitive advantage section will come after you have explained your competition.

In the beginning, you have to explain the competitive environment. If you are going to put it next to the section on competitive analysis, you will not have to go into details. Because you will already have explained those details.

However, if you are to present this section only, you will have to explain your competition . Along with that, you will also have to share analytic comparisons. For this, you can use pie charts, graphs, metrics, and other such diagrams.

And then, finally, you have to start explaining your competitive advantage over your competitors. Note that you have to write this section in the most convincing way. So, your prospects understand your dynamics well and invest in your business. Moreover, it is important for them to know if you have a clear strategic plan to run your business successfully.

competitive advantages

A lot of people may want to skip this section of your business plan. But in our opinion, you must never make that mistake. For it is your chance to tell your investors the ways you stand out from your competitors in your industry.

Important of Competitive Advantages

  • You get a chance to highlight your business’s strengths and opportunities
  • Your investors can have an idea that you have crystal clear ways to thrive your business
  • You restore your investors’ faith in you.
  • You explain why your business would be their best choice to invest in.

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Home > Business Plan > Competitive Advantage in a Business Plan

competitive advantage

Competitive Advantage in a Business Plan

… but we have the following advantages …

A business is creating competitive advantage over its competitors when it can achieve higher the industry average profit margins on its products. This can happen due to a number of factors including cost advantages, and superior product offerings. The main objective of the business is the make the competitive advantage sustainable.

Superior product offerings or differential advantages occur when the business has a product which is perceived by the customers as substantially better than the competitors products.

Even if a competitor were able to make an almost identical product, your competitive advantages should enable the business to win, build and maintain market share in the chosen target market.

Competitive Advantage Examples

Examples of things which might give your business a competitive or unfair advantage include the following:

  • First to market
  • Barriers to entry
  • Available funds and working capital
  • Key partnerships and relationships
  • Access to expertise, special skills and talents
  • Distribution rights

Competitive Advantage Presentation

An investor will look to see if there is a sustained competitive edge, capable of further development, which will allow the business to build and hold market share.

This is part of the financial projections and Contents of a Business Plan Guide , a series of posts on what each section of a simple business plan should include. The next post in this series sets out details of the market share the business plans to win using its competitive edge.

About the Author

Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

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competition and competitive edge in business plan

How to Write a Competitor Analysis for a Business Plan (with AI in 2023)

competition and competitive edge in business plan

Competitor analysis is a critical component of any business plan. It helps you understand the landscape of your industry, identify opportunities for growth and differentiation, and craft strategies that take advantage of your competitors' weaknesses.

Here's a step-by-step guide on how to conduct a comprehensive competitor analysis, including how to leverage AI tools like Bizway to make the process more efficient and effective.

Step-by-Step Guide to Performing a Competitor Analysis

1. identify your competitors.

Understanding your competitive landscape begins with pinpointing who your direct and indirect competitors are.

Points to Consider

  • Direct Competitors : Those who offer similar products/services in the same market.
  • Indirect Competitors : Businesses targeting your customer base with different offerings.
  • Utilize market research and customer feedback to list competitors.
  • Identify geographical considerations - local, regional, or global competitors.

2. Analyze Their Products/Services

A thorough examination of competitors’ offerings unveils potential areas for differentiation and enhancement in your product/service line.

  • Feature comparisons.
  • Pricing structures.
  • Unique Selling Propositions (USPs).
  • Adopt a customer-centric approach to understand how consumers perceive competitors’ offerings.
  • Identify gaps in their product/service lines that you could explore.

3. Assess Their Marketing Strategy

Understanding competitors’ marketing approaches aids in crafting a superior, data-driven marketing strategy.

  • Target audience.
  • Key messages and value propositions.
  • Channel effectiveness and presence.
  • Use social listening tools to gauge their social media effectiveness.
  • Analyze the SEO performance of competitors’ websites.

4. Examine Their Sales Strategy

Investigating sales channels and tactics employed by competitors reveals market penetration strategies and potential areas for diversification.

  • Distribution channels.
  • Pricing and sales tactics.
  • Customer relationship management.
  • Secret shop to observe sales tactics and customer experiences.
  • Review customer feedback on their purchasing experience.

5. Analyze Their Strengths and Weaknesses

Identifying what competitors excel in and fall short on enables strategic decision-making in exploiting market opportunities.

  • Operational efficiency.
  • Customer service quality.
  • Brand reputation and loyalty.
  • Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) for each competitor.
  • Leverage customer reviews and testimonials to gauge reputation.

Using AI for Competitor Analysis

Automated data collection.

AI automates the harvesting of data from myriad sources, ensuring robust research while saving time.

  • Use AI tools to scrape and aggregate data from competitors' websites, social media, and customer review platforms.
  • Ensure the data is categorized and stored systematically for easy analysis.

Real-Time Updates

AI provides a competitive edge by monitoring and reporting real-time updates on competitor activities.

  • Set up AI monitoring for specific competitor activity: product launches, PR releases, or marketing campaigns.
  • Ensure to leverage real-time data to inform swift strategic adjustments.

Predictive Analytics

Predictive analytics via AI deciphers patterns and anticipates future competitor moves, positioning your business proactively.

  • Leverage AI to analyze historical data for predicting future trends.
  • Utilize these insights to anticipate and formulate preemptive strategies.

Using Bizway for Competitor Analysis and Business Planning

One such AI tool that can revolutionize your competitor analysis process is Bizway . Bizway is an AI-powered business planning and research app that can help you research your competitors and write your entire competitor analysis with just a few clicks. Moreover, Bizway can assist you in writing your entire business plan, saving you time and providing you with expert-level planning documents.

With Bizway, you can automate the process of generating clear, concise planning docs across all areas of business, from an SEO Content Plan to User Onboarding Plan. It also helps fill knowledge gaps in areas of business you're not well-versed in.

So, whether you're a solopreneur, a small business owner, or an aspiring entrepreneur still in school, Bizway is the AI assistant you need to take your business planning to the next level.

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How to build a competitive analysis report with examples and tools

Written by by Juliet John

Published on  March 7, 2024

Reading time  8 minutes

Your company is launching a new product, eyeing a new market segment or contemplating a strategic pivot—as a seasoned marketer, your first move would be to conduct a competitive analysis. This exercise is elementary to uncover critical insights about the new market and gain visibility into the competitive landscape.

However, beyond research, there’s the crucial task of distilling those insights into actionable strategies that’ll give your business an advantage. This is where competitive analysis reports become critical, providing you a roadmap for translating raw data into strategic direction.

In this guide, we’ll explore how competitive analysis reports benefit your business, how you can build effective reports, the areas to focus on and competitive reporting tools.

What is a competitive analysis report?

A competitive analysis report is a strategic document that examines the position and performance of your competitors in your business. The report synthesizes your competitive intelligence research data and provides conclusions for better decision-making. It helps you understand the competitive landscape, identify areas for innovation or improvement and formulate strategies to outperform competitors.

Callout card defining competitor analysis report. It says, "A competitive analysis report is a strategic document that examines the position and performance of your competitors in your business. The report synthesizes your competitive intelligence research data and provides conclusions for better decision-making. "

A competitive analysis report typically contains information on marketing tactics, target audience demographics, product comparison and industry trends.

Benefits of a competitive analysis report

A competitive analysis report serves as a tool for competitor benchmarking . You can use it as a standard for realistic goal setting, accessing your business performance and measuring growth.

Let’s dive into some more key benefits.

Know where your business stands in the market

A good competitive analysis provides a realistic understanding of your business’ position in the market. Rather than make assumptions, use your report to make data-driven calculations of how your business compares in terms of market share, customers, messaging and differentiation.

For example, if you’re selling video editing software, you might use a competitive analysis report to learn how easy or difficult it is for novices to use your tool compared to your competitors’ tools. With this insight, you can define your unique selling proposition, understand customer preferences, identify gaps and decide on a positioning strategy that aligns your business goals with customer needs.

Understand your strengths and weaknesses vs. your competitors

Digging into competitor data doesn’t just uncover their strengths and weaknesses, it also exposes yours. Done properly, competitive reporting removes bias and shows you raw data on the areas where your business excels and lags.

A competitive analysis report also sheds light on the mistakes, failures and successes of your business rivals. So, you can build on those successes, avoid making the same mistakes and better position your business for growth.

Identify untapped opportunities and threats

A comprehensive competitive report uncovers growth opportunities such as underserved markets, emerging customer segments and areas where your competitors are underperforming. It also highlights potential threats like new market entrants or changes in customer behaviors. With this knowledge, you can create strategies to bridge those gaps.

Enhance marketing effectiveness

Reporting on your competitors’ marketing strategies is an opportunity to review and refine your own. For example, if you notice gaps in your competitor’s offering, messaging or positioning, you can devise strategies to differentiate yourself by marketing and selling your unique value more effectively.

Inform stronger business decisions

The insights in a competitive analysis report can inform stronger business decisions across departments such as product, marketing, procurement and others. By anchoring your strategies on data-driven insights, you can better defend your market and meet customer needs.

How to create a competitive analysis report

A competitor analysis report should your teams a clear picture of what the business is up against and the necessary strategies to get ahead.

Follow these steps to create an effective competitive analysis report:

Have a clear objective for your report

Since competitive analysis serves every aspect of your business, it can quickly become overwhelming. Outline it at the beginning of your document to clarify your goals and objectives. This will keep you and your report from getting lost in the vast amount of data you’ll uncover.

Do you want to investigate every aspect of your competitors and create an all-encompassing report? Or are you interested in specific areas like their sales and marketing strategies? Your objective will guide your research and direct the format for the report.

Identify your main competitors

Once you’re clear on the “why”, outline the competitors you must outperform to gain the upper hand in the market.

You can identify these competitors by speaking to your sales team or leaning into customer feedback. Alternatively, you can use competitive monitoring and social listening to learn what other companies your audience is interested in.

It’s also important to identify your SEO competitors as they can sometimes differ from your business competitors. You can find SEO competitors by using keyword research tools to check who’s ranking for your target keywords.

Conduct in-depth market research

The next step is market research to gather and organize information about your competitors, customers and industry.

Deep dive into particular customer segments with detailed customer profiles that will guide your marketing decisions later on. A social analytics tool like Sprout Social helps you conduct market research on social channels using advanced social media listening. Build sophisticated Listening queries to track millions of conversions happening around key topics and get a complete scope of your data to analyze insights by adjusting key filters as well without changing queries.

Sprout's social Listening tool helps you build sophisticated listening queries with templates that track millions of conversions happening around key topics and get a complete scope of your data to analyze insights by adjusting key filters as well without changing queries.

Keep track of your competitors’ social strategies, find out what’s working in your market and learn how well customer needs are being met.

Compare your product offerings

Compare your product to your competitors for quality, price, customer service and other areas to reveal your differentiators. Use social listening to gather information as well as scout forums like G2, Capterra and TrustPilot for unbiased opinions on your product and the competition.

It’s not compulsory to compare every feature you and your competitors offer. Instead, focus on only those relevant to the objectives of your analysis.

Compare your marketing strategies

Research the marketing and sales strategies of each competitor to understand how they conduct business. The goal is to analyze the factors behind their success and use those insights to inform your strategy. Investigate details such as their content marketing plans, influencer collaborations and sales channels. Look at the channels they use to communicate and engage with customers, promote their business and drive the most visibility.

The report should show how each competitor tells their brand story and the value they deliver to customers. These insights will help with clarifying your position and messaging to differentiate your brand and stand out among competitors.

Run a SWOT analysis

A SWOT analysis helps you evaluate your competitive position by laying out your company’s strengths, weaknesses, opportunities and threats based on all the data you’ve gathered. For instance, competitor analysis can help you collect key information through strategic social listening using filters like keywords, content type, social networks, common themes in Listening data and so on, so you can synthesize key areas the business needs to focus on across the competitive landscape. It’s also a great way to visualize all your research in an easy-to-understand and shareable format.

Sprout's competitor analysis dashboard visualizes key information through strategic social listening using filters like keywords, content type, social networks, common themes in Listening data and so on, so you can synthesize key areas the business needs to focus on across the competitive landscape.

Show your position in the competitive landscape

Finally, a competitive analysis report must show where your business and every important competitor stands in the competitive landscape. This can be achieved by pinpointing the two most important dimensions for competitiveness in your market and mapping them on a matrix alongside your company and its competitors.

With that, you’ll get a clear idea of your position based on the SWOT analysis you created earlier. Conclude the report by making recommendations that serve the original purpose of the competitive analysis.

Examples of competitive analysis reports

Here are some sample scenarios showing the details a competitive analysis report should focus on.

1. Increasing market share

To create a competitive analysis report focused on increasing market share, you must first start with a thorough product analysis . Identify and compare the core features and functionality of your competitors’ products against yours. Consider how their products meet the pressing needs of customers and look for areas of dissatisfaction you can capitalize on.

Evaluate the overall target market, including the customer segments your competitors focus on and their marketing strategies. By studying their positioning, messaging and marketing channels, you’ll discover underserved customer segments or areas of overlap in the market. The report should outline the opportunities gleaned from the analysis and recommend possible ways to address the needs and preferences of the untapped market segment.

2. New product launch

For a competitive report on a new product launch, start with a marketing competitive analysis to identify your direct and indirect competitors. Analyze their market share, product offerings and pricing strategies to determine the best ways to position your product, establish a strong presence and win customers early.

Consider the quality of each competing product, including its user experience and technological capabilities. Look for areas where your product can leverage emerging technology to gain a competitive edge. Also evaluate your competitors’ customer service and support offerings, including their return policies to identify how you can use superior customer service to build trust and loyalty quickly.

3. SEO campaigns

A competitive analysis report for an SEO campaign should focus on evaluating the content marketing, social media presence and SEO strategies of competitors. Analyze the keywords, content types and promotional strategies that drive the most organic traffic and customers for their business. On social channels, monitor their engagement levels, posting frequency, top-performing content and audience growth. These insights are useful for comparing and benchmarking your performance.

The report should also cover local search optimization and online advertising efforts for a comprehensive view of your competitors’ strengths and weaknesses.

Top competitive analysis reporting tools

Competitive monitoring tools help optimize the research process, analyze multiple data points and deliver data-driven insights you can use immediately.

Check out these three tools that help streamline the process of creating competitive analysis reports.

Sprout Social

Sprout Social provides powerful tools to help you monitor your competitors’ performance across social platforms like Instagram, Facebook and X (formerly Twitter).

Sprout Social's profile performance dashboard helps you monitor your competitors' performance across social platforms like Instagram, Facebook and X (formerly Twitter).

It allows you to benchmark your social performance against your top competitors so you can truly understand your brand’s social health. Sprout’s Advanced Listening tool helps you tap into conversations about you, your industry and competitors across social channels, review sites and communities.

With its powerful AI technology, you can sift through millions of conversations to uncover insights about key topics, your audience and industry in seconds. Those insights help you measure your share of voice (SOV), develop crisis management strategies and identify new market opportunities.

With access to tools like Premium Analytics and Sprout’s suite of competitive reports , you can easily visualize and show the impact of in-depth competitive analysis research. Your report can include:

  • Customized metrics based on your business goals and team’s priorities
  • Interactive charts and graphs that illuminate critical social data
  • Custom date range comparisons for performance benchmarking.

And with Sprout’s dynamic shareable link, you can quickly share the report with your team and external shareholders outside Sprout.

Kompyte gathers competitive intelligence from millions of data points, including social, website, content, ads, reviews, job postings and more. The platform uses artificial intelligence to filter through the noise and deliver actionable insights on your competitors.

Kompyte's dashboard gathers competitive intelligence from social, website, content, ads, reviews, job postings and more.

It automatically organizes competitive data into battle cards highlighting differentiators, market feedback, revenue and everything else your sales teams need to win deals.

Crayon uses artificial intelligence to track your competitors and also gives you alerts based on your requirements. It analyzes social content, reviews, press releases, pricing updates and other information to collect and provide insights into top competitors to keep your teams informed with relevant data.

Crayon's dashboard analyzes social content from reviews, press releases, pricing updates and others to collect and provide insights into top competitors.

Crayon allows you to create customizable reports and use battle cards, newsletters and announcements to share competitive intelligence data with your team.

Use competitive analysis reporting to grow your business

A competitive report is a compilation of data and statistics that empowers your company to make informed decisions and develop effective strategies. Once you compile the information from your competitive intelligence, you’ll be able to follow up on your findings with a clear action plan to boost your business.

Sprout can help streamline your competitive research process, benchmark your performance against the competition and create comprehensive reports that highlight your most critical data in an engaging way. Sign up for a free trial to try it for yourself.

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The 20 Best Business Plan Competitions to Get Funding

business plan competition

Business plan competitions can provide valuable feedback on your business idea or startup business plan template , in addition to providing an opportunity for funding for your business. This article will discuss what business planning competitions are, how to find them, and list the 20 most important business planning competitions.

On This Page:

What is a Business Plan Competition?

How do i find business plan competitions, 20 popular business plan competitions, tips for winning business plan competitions, other helpful business plan articles & templates.

A business plan competition is a contest between startup, early-stage, and/or growing businesses. The goal of the business plan competition is for participants to develop and submit an original idea or complete their existing business plan based on specific guidelines provided by the organization running the contest.

Companies are judged according to set criteria including creativity, feasibility, execution, and the quality of your business plan.

A quick Google search will lead you to several websites that list business planning competitions. 

Each site has a different way of organizing the business planning competitions it lists, so you’ll need to spend some time looking through each website to find opportunities that are relevant for your type of business or industry.

Finish Your Business Plan Today!

Below we’ve highlighted 20 of these popular competitions, the requirements and how to find additional information. The following list is not exhaustive; however, these popular competitions are great places to start if you’re looking for a business competition.

Rice Business Plan Competition

The Rice University Business Plan Competition is designed to help collegiate entrepreneurs by offering a real-world platform on which to present their businesses to investors, receive coaching, network with the entrepreneurial ecosystem, fine-tune their entrepreneurship plan, and learn what it takes to launch a successful business.

Who is Eligible?

Initial eligibility requirements include teams and/or entrepreneurs that:

  • are student-driven, student-created and/or student-managed
  • include at least two current student founders or management team members, and at least one is a current graduate degree-seeking student
  • are from a college or university anywhere in the world
  • have not raised more than $250,000 in equity capital
  • have not generated revenue of more than $100,000 in any 12-month period
  • are seeking funding or capital
  • have a potentially viable investment opportunity

You can find additional  eligibility information on their website.

Where is the Competition Held?

The Rice Business Plan Competition is hosted in Houston, TX at Rice University, the Jones Graduate School of Business.

What Can You Win?

In 2021, $1.6 Million in investment, cash prizes, and in-kind prizes was awarded to the teams competing.

This two-part milestone grant funding program and pitch competition is designed to assist students with measurable goals in launching their enterprises.

Teams must be made up of at least one student from an institution of higher education in Utah and fulfill all of the following requirements:

  • The founding student must be registered for a minimum of nine (9) credit hours during the semester they are participating. The credit hours must be taken as a matriculated, admitted, and degree-seeking student.
  • A representative from your team must engage in each stage of Get Seeded (application process, pre-pitch, and final pitch)
  • There are no restrictions regarding other team members; however, we suggest building a balanced team with a strong combination of finance, marketing, engineering, and technology skills.
  • The funds awarded must be used to advance the idea.

The business plan competition will be hosted in Salt Lake City, UT at the Lassonde Entrepreneur Institute at the University of Utah.

There are two grants opportunities:

  • Microgrant up to $500
  • Seed Grant for $501 – $1,500

Global Student Entrepreneur Awards

The Global Student Entrepreneur Awards is a worldwide business plan competition for students from all majors. The GSEA aims to empower talented young people from around the world, inspire them to create and shape business ventures, encourage entrepreneurship in higher education, and support the next generation of global leaders.

  • You must be enrolled for the current academic year in a university/college as an undergraduate or graduate student at the time of application. Full-time enrollment is not required; part-time enrollment is acceptable.
  • You must be the owner, founder, or controlling shareholder of your student business. Each company can be represented by only one owner/co-founder – studentpreneur.
  • Your student business must have been in operation for at least six consecutive months prior to the application.
  • Your business must have generated US $500 or received US $1000 in investments at the time of application.
  • You should not have been one of the final round competitors from any previous year’s competition.
  • The age cap for participation is 30 years of age.

You can find additional   eligibility information on their website.

Regional competitions are held in various locations worldwide over several months throughout the school year. The top four teams then compete for cash prizes during finals week at the Goldman Sachs headquarters in New York City.

At the Global Finals, students compete for a total prize package of $50,000 in cash and first place receives $25,000. All travel and lodging expenses are also covered. Second place gets US $10,000, while third place earns US $5,000. Additional prizes are handed out at the Global Finals for Social Impact, Innovation, and Lessons from the Edge.

Finish Your Business Plan in 1 Day!

The collegiate entrepreneurs organization business plan competition.

The Collegiate Entrepreneurs Organization Business Plan Competition (COEBPC) exists to help early-stage entrepreneurs develop their business skills, build entrepreneurial networks, and learn more about how they can transform ideas into reality. It also offers cash prizes to reward entrepreneurship, provide an opportunity for recognition of top student entrepreneurs around the world, and provide unique opportunities for networking.

To compete, you must:

  • Be a currently enrolled student at an accredited institution
  • Have a viable business concept or be the creator of an existing business that generates revenue.

If you are among the top three finalists of the business plan competition and successfully receive prize money, you will be required to submit a class schedule under your name for the current academic semester. Failure to do so will result in the forfeit of the prize money.

All competitions are held online. The finalist will receive a trip to the International Career Development Conference, where they have an opportunity to win additional prizes from CEO’s sponsors.

  • First Place – $7,000
  • Second Place – $5,000
  • Third Place – $3,000
  • People’s Choice Award – Collegiate Entrepreneur of the Year – $600

MIT 100k Business Plan Competition and Expo

The MIT 100K was created in 2010 by the Massachusetts Institute of Technology to foster entrepreneurship and innovation on campus and around the world. Consists of three distinct and increasingly intensive competitions throughout the school year: PITCH, ACCELERATE, and LAUNCH. 

  • Submissions may be entered by individuals or teams.
  • Each team may enter one idea.
  • Each team must have at least one currently registered MIT student; if you are submitting as an individual, you must be a currently registered MIT student.
  • Entries must be the original work of entrants.
  • Teams must disclose any funding already received at the time of registration.

Hosted in Cambridge, MA at the Massachusetts Institute of Technology beginning in October through May of each academic year.

Top finalists will have a chance to pitch their ideas to a panel of judges at a live event for the chance to win the $5,000 Grand Prize or the $2,000 Audience Choice Award.

20 Finalists are paired with industry-specific business professionals for mentorship and business planning and a $1,000 budget for marketing and/or business development expenses.

The 10 Top Finalists participate in the Showcase and compete for the $10,000 Audience Choice Award while the 3 Top Finalists automatically advance to LAUNCH semi-finals.

The grand prize winner receives a cash prize of $100,000 and the runner-up receives $25,000.

Florida Atlantic University (FAU) Business Plan Competition

The FAU business plan competition is open to all undergraduate and graduate student entrepreneurs. The competition covers topics in the areas of information technology, entrepreneurship, finance, marketing, operations management, etc.

All undergraduate and graduate students are eligible to participate.

The business plan competition will be held at Florida Atlantic University in Boca Raton, Florida.

  • First prize: $5,000 cash
  • Second prize: $500 cash

Network of International Business Schools (NIBS) Business Plan Competition

The Network of International Business Schools (NIBS) Business Plan Competition is designed to offer an opportunity to develop your business plan with the guidance of industry experts. It provides the opportunity for you to compete against fellow entrepreneurs and explore big ideas.

  • Participants must be the legal age to enter into contracts in the country of residence.
  • Participants may not be employed by an organization other than their own company or business that they are launching for this competition.
  • The plan should be for a new business, not an acquisition of another company.

The Network of International Business Schools (NIBS) Business Plan Competition is held in the USA.

There is a cash prize for first, second, and third place. There is also a potential for a business incubator opportunity, which would provide facilities and assistance to the winners of the competition.

Washington State University Business Plan Competition

The Washington State University Business Plan Competition has been serving students since 1979. The competition is a great opportunity for someone who is looking to get their business off the ground by gaining invaluable knowledge of running a successful business. It offers a wide range of topics and competition styles.

  • Any college undergraduate, graduate, or professional degree-seeking student at Washington State University
  • The company must be an early-stage venture with less than $250,000 in annual gross sales revenue.

The Washington State University Business Plan Competition is held in the Associated Students Inc. Building on the Washington State University campus which is located in Pullman, Washington.

There are a wide variety of prizes that could be won at the Washington State University Business Plan Competition. This is because the business plan competition has been serving students for over 30 years and as such, they have offered more than one type of competition. The common prize though is $1,000 which is awarded to the winner of each class. There are also awards for those who come in second place, third place, etc.

Milken-Penn GSE Education Business Plan Competition

The Milken-Penn GSE Education Business Plan Competition is one of the most well-known competitions in the country. They have partnered with many prestigious institutions to provide funding, mentorship, and expertise for the competition.

Education ventures with innovative solutions to educational inequity from around the world are encouraged to apply, especially those ventures founded by and serving individuals from marginalized and historically underrepresented communities.

We encourage applicants working in every conceivable educational setting–from early childhood through corporate and adult training. We also welcome both nonprofit and for-profit submissions.

The competition is held at the Wharton School of the University of Pennsylvania.

All finalists receive $1,000 in cash and $5,000 in Amazon Web Services promotional credits.

Next Founders Business Plan Competition

Next Founders is a competition geared towards innovative startups with a social impact, looking to transform society by addressing key global human needs. The competition inspires and identifies energetic, optimistic entrepreneurs who are committed to achieving their vision.

Next Founders is for Canadian business owners of scalable, high-growth ventures.

Next Founders is held at the University of Toronto.

You could win up to $25,000 CAD in cash funding for your new business.

Hatch Pitch Competition

The Hatch Pitch competition is one of the most prestigious business competitions in the US. The winners of the Hatch Pitch Competition are given access to mentorship courses, discounted office space with all amenities included, incubators for startups, tailored education programs, financial counseling & more.

The competition is for companies with a business idea.

  • The company’s product/service must have launched within the past 2 years, or be launched within 6 months after the Hatch Pitch event.
  • Founders must retain some portion of ownership in the company.
  • Received less than $5 million in funding from 3rd party investors.
  • The presenter must actively participate in Hatch Pitch coaching.

The Hatch Pitch Competition is located at the Entrepreneur Space in Dallas.

The grand prize for this business plan competition is access to resources like incubators and mentorships that could prove invaluable in bringing your startup company to the next level.

TechCrunch’s Startup Battlefield

The Startup Battlefield is a business plan competition that is sponsored by TechCrunch.  It awards the winner $50,000. There are two different rounds to this competition:

  • First Round – 15 companies from all of the applicants that submitted their business plans for this round.
  • Second Round – Two finalist companies compete against each other at TechCrunch Disrupt NY’s main stage.

At the time of the application process, companies must have a functional prototype to demo to the selection committee. In selecting final contestants, we will give preference to companies that launch some part of their product or business for the first time to the public and press through our competition. Companies that are in closed beta, private beta, limited release or generally have been flying under the radar are eligible. Hardware companies can have completed crowdfunding but those funds should have been directed to an earlier product prototype. Existing companies launching new feature sets do not qualify.

TechCrunch’s Startup Battlefield is held at different locations.

The Startup Battlefield rewards the winner with $50,000. In addition, the two runner-ups get a prize of $5,000 each.

New Venture Challenge

New Venture Challenge is a competition hosted by the University of Chicago. There are 3 main categories that will be judged:

  • Innovative Concept – Arguably the most important category, this focuses on uniqueness, originality, and suitability.
  • Market Fit/Business Model – Are you solving an actual problem for your target market? Does your project have the potential for profit?
  • Presentation – Did you make a compelling, impactful presentation? Did you clearly communicate your goals and vision to potential investors?

You can find  eligibility information on their website.

The New Venture Challenge competition is held in Chicago, IL.

Finalists are awarded:

  • First Place: $50,000 equity investment and access to industry mentors and other resources.
  • Second place: $25,000 equity investment and access to industry mentors and other resources.
  • Third place: $15,000 equity investment and access to industry mentors and other resources.

New Venture Championship

The New Venture Championship is hosted by the University of Oregon and has been since 1987. The championship brings new ventures and innovative business ideas to life and the competition offers plan writing as a service to those who need it.

The University of Oregon New Venture Championship is open to university student teams with 2-5 members that have at least one graduate student involved with their venture. Students should be enrolled in a degree program or have finished their studies in the current academic year.

The New Venture Championship hosted by the University of Oregon is held in Eugene, Oregon.

Every business plan has a chance of winning a cash prize from $3,000 to $25,000 and additional benefits like plan coaching and office space rental.

Climatech & Energy Prize @ MIT

The Climatech & Energy Prize @ MIT is a competition that focuses on companies that are involved in the area of energy, environment, and climate change.

  • Participants must be a team of two or more people.
  • At least 50% of formal team members identified in the competition submission documentation must be enrolled as half-time or full-time college or university students.

The Climatech & Energy Prize @ MIT is held in Cambridge, MA.

The grand prize winner receives $100,000 and other winners may receive other monetary prizes.

Baylor Business New Venture Competition

This competition has been offered by Baylor for the last 20 years. It is designed to help aspiring entrepreneurs refine business ideas, and also gain valuable insights from judges and other entrepreneurs.

Must be a current undergraduate student at Baylor University or McLennan Community College.

The Baylor Business New Venture competition will be held at the Baylor University, Waco, TX.

The grand prize winner will receive $6,000. There are also other prizes given out to the other finalists in each category which are worth $1,500 – $2,000.

13th IOT/WT Innovation World Cup

The 13th IOT/WT Innovation World Cup was organized by the 13th IOT/WT Innovation World Cup Association. It was organized to provide a platform for innovators from all over the world to showcase their innovative ideas and projects. The competition aimed at drawing the attention of investors, venture capitalists, and potential business partners to meet with representatives from different companies and organizations in order to foster innovation.

The revolutionary Internet of Things and Wearable Technologies solutions from developers, innovative startups, scale-ups, SMEs, and researchers across the world are invited to participate. Eight different categories are available: Industrial, City, Home, Agriculture, Sports, Lifestyle, and Transport.

Only those submissions that have a functional prototype/proof of concept will advance in the competition, mere ideas will not be considered. 

The competition is held in Cleveland, Ohio also an important center for innovation and cutting-edge technology.

Win prizes worth over $500,000, connect with leading tech companies, speed up your development with advice from tech experts, join international conferences as a speaker or exhibitor, and become part of the worldwide IoT/WT Innovation World Cup® network. 

The U.Pitch is a competition that gives you a chance to share your idea and for the community of budding entrepreneurs, startup founders, CEOs, and venture capitalists to invest in your enterprise. It also provides mentoring by experts in the field.

  • Currently enrolled in an undergraduate or graduate program
  • Applicants may compete with either an idea OR business currently in operation
  • Applicants must be 30 years of age or under

The U.Pitch is held in San Francisco, California.

Enter to win a part of the $10,000 prize pool.

At the core of CodeLaunch is an annual seed accelerator competition between individuals and groups who have software technology startup ideas.

If your startup has raised money, your product is stable, you have customers, and revenue, you are probably not a fit for CodeLaunch.

CodeLaunch is based in St. Louis, Missouri. 

The “winner” may be eligible for more seed capital and business services from some additional vendors.

New York StartUP! Business Plan Competition

The New York StartUP! is a competition sponsored by the New York Public Library to help entrepreneurs from around the world to develop their business ideas.

  • You must live in Manhattan, The Bronx, or Staten Island
  • Your business must be in Manhattan, The Bronx, or Staten Island
  • All companies must have a big idea or business model in the startup phase and have earned less than $10,000

The New York StartUP! competition is held in New York, NY.

Two winners are chosen: 

  •  Grand Prize – $15,000  
  •  Runner-up – $7,500  

tips for success

First, determine if the competition is worth your time and money to participate.

  • What is the prize money?
  • Who will be on the judging panel?
  • Will there be any costs associated with entering and/or presenting at the competition (e.g., travel and lodging expenses)?

Once you’ve determined the worth of the competition, then shift to focusing on the details of the competition itself.

  • What are the rules of the competition?
  • Are there any disqualifying factors?
  • How will you be judged during the different parts of the competition?

After conducting this research, it’s best to formulate an idea or product that appeals to the judges and is something they can really get behind. Make sure you thoroughly understand the rules and what is expected from your final product. Once you know what is expected from you, you’ll be able to refine and practice your pitch to help you move through the stages of the competition.

These competitions are a fantastic method to get new business owners thinking about business possibilities, writing business plans, and dominating the competition. These contests may assist you in gaining important feedback on your business concept or plan as well as potential monetary prizes to help your business get off the ground.  

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FACT SHEET: President   Biden Announces New Actions to Lower Costs for Americans by Fighting Corporate   Rip-Offs

Launch of Strike Force on Unfair and Illegal Pricing; New Actions to Slash Credit Card Late Fees, Combat High Internet Costs, and Support Small Farmers; And New Report Showing That Administration Efforts to Eliminate Junk Fees Will Save Over $20 Billion Annually

President Biden is laser focused on lowering costs for hardworking Americans by taking action to end corporate rip-offs and other unfair practices that keep prices high. Under the President’s leadership, agencies across the Administration are working to promote competition, protect consumers, and lower prices by implementing the President’s Executive Order on Promoting Competition in the American Economy . Today, President Biden will launch a new Strike Force to crack down on unfair and illegal pricing. President Biden is committed to making sure corporations are held accountable when they try to rip off Americans, including when they break the law while keeping prices high. To that end, the President is establishing a new Strike Force on Unfair and Illegal Pricing co-chaired by the Department of Justice (DOJ) and the Federal Trade Commission (FTC). This Strike Force will strengthen interagency efforts to root out and stop illegal corporate behavior that hikes prices on American families through anti-competitive, unfair, deceptive, or fraudulent business practices. DOJ and FTC, along with other agencies on the Strike Force, will focus their collaborative efforts on key sectors where corporations may be violating the law and keeping prices high, including prescription drugs and health care, food and grocery, housing, financial services, and more. At its sixth meeting, President Biden’s Competition Council will announce three new actions to promote competition and lower costs and release a new report showing that the Administration’s work to eliminate junk fees will save Americans more than $20 billion each year:

  • Ending excessive credit card late fees . Today, The Consumer Financial Protection Bureau (CFPB) finalized a rule to slash credit card late fees from the current average of $32 down to $8, saving consumers $10 billion a year, or an average savings of $220 per year for the more than 45 million people who are charged these late fees annually. For too long, surprise and hidden late fees have burdened consumers. By closing the loophole that has allowed companies to charge these excessive late fees, today’s action will not only save consumers billions of dollars but promote fair and competitive markets. It builds off of steps the CFPB has already taken to crack down on junk fees in the banking sector, including fees for basic customer services and moving to curb overdraft fees and bounced check fees. In addition, the CFPB has found that credit card interest rate margins have climbed to an all-time high and big banks are charging more in interest than smaller banks.
  • Saving consumers more than $20 billion in junk fees. A new blog published today by the Council of Economic Advisers (CEA) finds that actions from the Biden-Harris Administration will help eliminate more than $20 billion in junk fees annually going forward. Analysis of a number of major sectors across the economy show that consumers pay $90 billion in junk fees every year, including on live event tickets, internet and cable fees, apartment rentals, banking fees, auto dealer fees, and more. The CEA analysis cites extensive literature that indicates fees dripped in throughout the purchasing process after the consumer has already made decisions about what to buy make it difficult to comparison shop, disadvantage businesses that don’t want to employ junk fees, and lead to consumers paying more.
  • Cracking down on bulk billing junk fees to lower costs and promote competition. The Federal Communications Commission (FCC) is circulating a proposed rule that would lower costs and increase choice for consumers by banning “bulk billing” arrangements, a practice by which landlords or providers charge everyone living or working in a building for a particular internet, cable, or satellite service, even if they don’t want it or haven’t opted in. These arrangements limit consumer choice by preventing tenants from choosing the services at the price point and level that are best for their needs, and can impose fees for unnecessary services and deter competition. In addition, the proposed rule seeks to address other exclusive arrangements between service providers and landlords that impede competition and drive-up prices, such as exclusive wiring arrangements, exclusive marketing arrangements, and certain revenue sharing agreements.
  • Promoting competitive agricultural markets and ensuring fairness for farmers and ranchers. Fair competition is key to making sure America’s food markets operate effectively and producers and consumers have robust choices and opportunity. Today, the Department of Agriculture (USDA) finalized a rule to protect the farmers and ranchers who produce meat and poultry by cracking down on processing companies’ deceptive contracts, banning retaliatory practices that prevent small producers from raising concerns or coming together in associations, and protecting certain producers from discrimination. USDA’s work across the agricultural supply chain helps support more competition, which can lower food prices.

Today’s announcements build on far-reaching work the Competition Council has undertaken during the seven months since its last meeting, including:

  • Cracking down on junk fees that cost consumers $90 billion each year. The FTC has proposed a rule that, if finalized as proposed, would ban companies from charging hidden and surprise junk fees and require that prices are listed upfront when consumers make purchases. In addition, the FTC finalized a rule to ban auto dealers from using bait-and-switch tactics to deceive consumers and to stop auto dealers from charging hidden junk fees for services that provide no additional value. The Department of Labor also proposed a rule that would reduce junk fees in retirement products and help ensure that the financial advice that Americans get about their retirement is in their best interest. Finally, the FCC proposed a rule to ban early termination fees for cable and satellite operators, and later this month will vote to finalize a rule to mandate all-in pricing for cable and satellite services.
  • Prohibiting financial product comparison shopping tools from steering consumers to products based on kickbacks. The CFPB issued a circular stating that companies that provide consumers with comparison shopping tools—say for a credit card, loan, or bank account—are prohibited from steering consumers to products or lenders because they are receiving a kickback. Individuals often use these sites thinking they are receiving unbiased comparisons; manipulated results makes it difficult for consumers to honestly evaluate products, and may result in choosing a less advantageous product.
  • Promoting competition in food and grocery markets. USDA continues to support new entrants in food markets, protect farmers and ranchers, and lower prices for consumers. This includes supporting domestic fertilizer production with over $50 million in grants awarded in October as part of up to $900 million in funding for the program. USDA also finalized a rule to improve poultry markets by making sure poultry growers receive the information they need about costs and payments from the large corporations they work with.
  • Making health care markets more affordable and competitive. In December, the Department of Commerce released a proposed framework providing guidance that agencies can consider price as a factor when determining whether to exercise march-in rights for federally funded inventions connected to prescription drugs. In addition, HHS rejected more than 1,000 Medicare Advantage TV marketing ads in one year that were misleading to consumers and proposed a rule that if finalized will prohibit insurance companies from paying brokers to steer patients towards certain plans based on compensation, rather than options that meet best patient health needs. Additionally, HHS proposed to protect Medicare consumers from third parties selling their information without their consent. HHS also took historic steps to break up the Organ Procurement and Transplantation Network vendor monopoly. Finally, FTC and HHS launched a probe into anti-competitive behavior by group purchasing organizations (GPOs) and drug wholesalers that may contribute to generic drug shortages and HHS is seeking input on how the agency can increase transparency and promote competition in Medicare Advantage markets.
  • Improving transportation systems. The Surface Transportation Board has proposed a new reciprocal switching rule to improve efficiency and increase competition for moving goods across the country, by creating an opportunity for competitors to share the tracks with railroads that fail to provide reliable service. The Federal Maritime Commission is also implementing the bipartisan Ocean Shipping Reform Act signed by President Biden, including issuing a final rule that provides new clarity and timelines on when shippers like farmers and retailers can be billed by ocean carriers. Finally, the Department of Transportation levied a record $140 million penalty on Southwest Airlines for their 2022 holiday meltdown—$90 million of the penalty will go towards compensating future Southwest passengers affected by cancellations or significant delays caused by the airline.
  • Institutionalizing competition. The FTC and DOJ recently finalized updated merger guidelines to reflect the realities of the modern economy and help promote fair, open, and competitive markets as the two agencies review mergers that come before them. Further, the Office of Information and Regulatory Affairs released new guidance to ensure that competition continues to be at the center of future federal rulemaking.
  • Lowering costs and improving access in the communications sector. The FCC is working to restore net neutrality, which will prohibit Internet Service Providers from blocking legal content, throttling speeds, and creating fast lanes that favor those who can pay for access. The FCC also adopted rules that prohibit digital discrimination in high-speed Internet access based on income, race, ethnicity, religion, and national origin, which will protect civil rights, lower costs, and increase internet access for Americans across the country.

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COMMENTS

  1. How to Write and conduct a Competitive Analysis

    Here are the steps you need to take: 1. Identify your competitors. The first step in conducting a comprehensive competitive analysis is to identify your competitors. Start by creating a list of both direct and indirect competitors within your industry or market segment. Direct competitors offer similar products or services, while indirect ...

  2. How to Write a Great Business Plan: Competitive Analysis

    The Competitive Analysis section of your business plan is devoted to analyzing your competition--both your current competition and potential competitors who might enter your market. Every business ...

  3. Conduct a Competitive Analysis (With Examples) [2024] • Asana

    You decide to conduct a market analysis for your business. To do so, you would: Step 1: Use Google to compile a list of your competitors. Steps 2, 3, and 4: Use your competitors' websites, as well as SEO analysis tools like Ahrefs, to deep-dive into the service offerings and marketing strategies of each company.

  4. How to Conduct Competitive Analysis in a Business Plan

    Determine what you need to know about your market. The more focused the research, the more valuable it will be. Prioritize the results of the first step. You can't research everything, so ...

  5. How to Write the Competitive Analysis of a Business Plan

    The steps to developing the competitive analysis section of your business plan include: Identify your competition. Select the appropriate competitors to analyze. Determine your competitive advantage. 1. Identify Your Competition. To start, you must align your definition of competition with that of investors. Investors define competition as to ...

  6. How To Create A Competitive Analysis For Your Business Plan

    2. Determine Products and Services That Your Competition Offers. To conduct a comprehensive competitor analysis, choose five to 10 competitors with similar product or service offerings and business models. Select a mix of direct and indirect competitors to understand how new markets may affect your company.

  7. How To Write A Competitive Analysis For Your Business Plan

    The competitive analysis section of your market analysis in your business plan is essential. Knowing your competition is as important as knowing your product and your customer. Market gaps tell you where to develop your product and internal weaknesses tell you where you're vulnerable to losing customers. A solid competitive analysis is your ...

  8. Competitive Advantage Definition With Types and Examples

    Competitive advantages are conditions that allow a company or country to produce a good or service at a lower price or in a more desirable fashion for customers. These conditions allow the ...

  9. How to Identify Your Competitive Strengths for Your Business Plan

    To figure out your competitive advantage, start by asking yourself these two critical questions: 1. Why do people buy from me instead of my competitors? Think about this question in terms of ...

  10. Writing a Business Plan: Competitor Analysis Section

    When you're writing the business plan, you'll write the competitor analysis section in the form of several paragraphs. The first paragraph will outline the competitive environment, telling your readers who your proposed business's competitors are, how much of the market they control and any other relevant details about the competition. The ...

  11. 10 Proven Strategies to Gain a Competitive Edge for Your Business in 2021

    Ask your customers for feedback and the ways you can improve your offer. Then, identify and implement the processes to improve your business. This will also make your customers feel wanted and help in making quick and efficient changes in the business. 6. Turn customers into evangelists.

  12. Write the Competition Section: Business Plan Writing

    Also, make sure that you have conducted a competitive analysis and processed data of at least 5 competition companies. Once you have everything you need, you can go through the following steps-. 1. Determining and Documenting Your Business Position. Regardless of your purpose, you will have to follow this step.

  13. How to Write Competitive Analysis in a Business Plan (w/ Examples)

    Perform a SWOT Analysis of your competitors. 1. Identify Your Direct and Indirect Competitors. First things first — identify all your business competitors and list them. You can make the final list later, but right now jot down all the competitors including new competitors.

  14. How to Write a Competitive Edge for Business

    Writing. A discussion of your competitive edge can be part of the section of your business plan that deals with the description of your company, or it can be the introduction to your marketing ...

  15. Business plan tips: how to identify your competitive advantage

    Here are some tips to help build a comprehensive cash flow projection: 1. Lay out your first 24 months. Most financial institutions are looking for a two-year plan. Here is an example of a cash flow template to detail a 24-month cash flow, with annual and monthly totals (if you prefer a spreadsheet that also works).

  16. Competition in a Business Plan

    The competition section of the business plan aims to show who you are competing with, and why the benefits your product provides to customers are better then those of the competition; why customers will choose your product over your competitors. ... The next post in this series will deal with the competitive advantages the business has in the ...

  17. What is a Competitive Advantage? Explained with Examples

    1. Brand. Strong Branding is one of the strongest sustainable competitive advantages. A lot goes into making a brand like building customer relationships, quality service/product, time, and money. But when the company is identified as a brand in the market, it brings you a positional advantage. And at the same time, your sales become easier and ...

  18. Competitive Advantage in a Business Plan

    A business is creating competitive advantage over its competitors when it can achieve higher the industry average profit margins on its products. This can happen due to a number of factors including cost advantages, and superior product offerings. The main objective of the business is the make the competitive advantage sustainable.

  19. 16 Ways To Maximize Your Competitive Advantage And Drive Growth

    Follow their advice to differentiate your organization in the marketplace and position yourself for long-term growth and success. 1. Know Your Greater Purpose. A higher purpose is a particularly ...

  20. How to Write a Competitor Analysis for a Business Plan (with AI in 2023)

    Competitor analysis is a critical component of any business plan. It helps you understand the landscape of your industry, identify opportunities for growth and differentiation, and craft strategies that take advantage of your competitors' weaknesses. Here's a step-by-step guide on how to conduct a comprehensive competitor analysis, including ...

  21. Eight Key Strategies To Overcome Your Competition And Stand ...

    6. Share Your Expertise. People want to work with companies they trust, and sharing your industry knowledge with your audience is one way of building that trust. We work with a lot of clients who ...

  22. How to Build a Competitive Analysis Report

    3. SEO campaigns. A competitive analysis report for an SEO campaign should focus on evaluating the content marketing, social media presence and SEO strategies of competitors. Analyze the keywords, content types and promotional strategies that drive the most organic traffic and customers for their business.

  23. The 20 Best Business Plan Competitions [Updated 2024]

    MIT 100k Business Plan Competition and Expo. The MIT 100K was created in 2010 by the Massachusetts Institute of Technology to foster entrepreneurship and innovation on campus and around the world. Consists of three distinct and increasingly intensive competitions throughout the school year: PITCH, ACCELERATE, and LAUNCH.

  24. FACT SHEET: President

    Promoting competitive agricultural markets and ensuring fairness for farmers and ranchers. Fair competition is key to making sure America's food markets operate effectively and producers and ...

  25. Nigerian Business Plan Writer on Instagram: "Do you want to be

    1 likes, 0 comments - ideakindle on July 20, 2022: "Do you want to be FINANCIALLY independent? Then start a new or side business today. Our experts have carefully prepared over 100 professional business plans that are proven to be pandemic and recession proof specifically for the Nigerian and African market. Get started with that dream business today. ( ALL NECESSARY DETAILS BELOW) . You can ...