Competitive analysis in starting a business involves evaluating and comparing your company against its potential direct, indirect, and tertiary competitors. The goal is to assess their strengths, weaknesses, market positioning, strategies, and any other information to help plan your own venture strategically.
Types of competitors:
- Direct Competitors offer similar products or services to the same target audience. They are the most noticeable competitors.
- Indirect Competitors offer products or services that are related but not identical to yours. They may serve the same need but in a different way or focus on a slightly different market segment.
- Tertiary Competitors might share the same customer base or offer products/services that complement yours. These could be potential partners or collaborators rather than traditional competitors.
I’ve created a super easy competitive analysis template on Google Sheets that simplifies the process for you! Just plug in data about your competitors’ strengths, weaknesses, market share, and more. The template provides a structured and organized way to gain insights, facilitating smarter decision-making for your business development.