Competitive Analysis in a Business Plan

The video tutorial explains competitive analysis, focusing on identifying competitors and substitute products in the market. It discusses the importance of understanding buyer and supplier power, as well as barriers to market entry. The tutorial also covers strategies for entering the market, such as differentiating value offerings or focusing on niche markets to compete effectively.

What is the primary goal of a competitive analysis?

• To determine the extent of competition in the market

• To create a marketing plan

• To establish a pricing strategy

• To identify potential investors

How does supplier power affect a business?

• It controls the distribution channels

• It determines the selling price of products

• It influences the cost of production

• It affects the number of competitors

What are barriers to entry?

• Factors that make it difficult to enter a market

• Strategies to reduce production costs

• Methods to increase buyer power

• Techniques to identify competitors

Which strategy can help a business compete with larger, established competitors?

• Increasing product prices

• Reducing cost structure

• Limiting distribution channels

• Focusing on direct competitors only

What is a niche market?

• A market with high competition

• A market with fewer competitors

• A market with high buyer power

• A market with many substitute products