Competitive analysis methods for small business owners

Business

The objective of this work is to answer the questions of: (1) What is the value of competitive analysis to the small business owner?; (2) What sorts of thing should the business owner know about their competition; and (3) What analytical methods can be used to become informed of this information?

VALUE of COMPETITIVE ANALYSIS to SMALL Business OWNER

The advantages and benefits of conducting a competitive analysis by the small business owner include the number one benefit of knowing what the edge that the business has over its competition in the marketplace. This analysis allows the business owner to know the target market which is key for business success. The business owner is also to identify and analyze the competitors of the business in terms of the strengths and weaknesses of their products and services as compared to the small business product and services offerings. This type of analysis will identify the strengths and weaknesses of the business and of its competition.

III. METHODS of ANALYSIS to INFORM Business OWNER

Various methods of analysis exists which are useful in gaining needed information. One method of analysis is termed a SWOT analysis which examines the business in terms of its 'strengths', 'weaknesses', 'threats', and 'opportunities'. Another analysis that is informing in relation to: (1) Firm strategy, structure, and rivalry, (2) government; (3) factor conditions; (4) related and supported industries; and (5) demand conditions is the method known as Porter's Diamond analysis.