Competitive analysis helps entrepreneurs understand the businesses customers can choose instead of their venture. It can reveal market gaps, guide planning, and help an entrepreneur develop a competitive edge that supports sustainable revenue.
A competitive analysis is a structured examination of competitors, their offerings, and the ways they serve a target market. It helps an entrepreneur understand how competitors market their businesses and where customers may be underserved. A useful analysis considers both what competitors do well and what they do not do well.
All flashcards
What is competitive analysis?
A structured examination of competitors, their offerings, and how they serve customers, used to inform planning and identify ways to deliver distinctive value.
How do direct competitors differ from substitutes?
Direct competitors offer similar products or services to the same customers. Substitutes are different offerings that can satisfy a related customer need.
What does PEST analysis examine?
Political, economic, societal, and technological conditions that may affect a venture.
How do a USP and a competitive advantage differ?
A USP describes a distinctive product or service benefit; a competitive advantage is what helps the venture deliver and sustain that benefit.
What are the four components of a business model?
Offering, customers, infrastructure, and financial viability.
Quiz questions
Which set of factors does PEST analysis examine?Answer: Political, economic, societal, and technological conditions
What can the three circles tool help an entrepreneur identify?Answer: Customer-valued benefits that competitors do not provide
Why should entrepreneurs avoid treating online reviews as representative of every customer?Answer: People who choose to leave reviews may not represent the wider customer group.
Which set names the four components of a business model?Answer: Offering, customers, infrastructure, and financial viability
What does financial viability concern?Answer: Whether a venture can remain financially sustainable while fulfilling its purpose
Based on Entrepreneurship by Michael Laverty, Chris Littel (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.