Title: Analyze the competitive environment.
Course: Make It Your Business (12151-18) > Section: Conducting a Needs Assessment

Analysis should include

- the definition of competition
- an explanation of the value of competition in the free enterprise system
- an a explanation of the basis for competition
- summary of the factors influencing purchasing (e.g., customer service, quality of product or service, availability, location, convenience)
- an explanation of the benefits of competition
- an explanation of the benefits of conducting SWOT (strengths, weaknesses, opportunities, threats) analysis.

Analysis may be guided by answering the following key questions:

- Who are the competitors?
- What volume of the product or service does each one sell?
- How does each advertise/promote the product or service?
- What is the quality level of the product or service?
- What is the availability of the product or service?
- What is the location of the product or service?
- What alternative sales venues does the business offer (e.g., online sales, multiple locations)?
- What are the prices of the product or service?
- What types and levels of customer service does the business offer?
- What is the outlook for each of these competitors (e.g., growing, shrinking, staying the same)?

Process/Skill Questions

- Why should a business owner investigate the competition?
- What is the difference between direct and indirect competition?
- What can a business do to make itself more attractive than the competition?
- Why is competition good for the free enterprise system?
- What is a competition grid? How can completing a competition grid aid a business?
- What is the importance of location of a product or service?
- How does competition benefit consumers?
- Why is it important to analyze the types and levels of customer service offered by competitors?
- What are competitive advantages other than price?