Ask yourself these questions and write down the answers.
On your market:
- What barriers to entry are there to this market?
- Is the market subject to regulation?
- What risks are inherent in this market?
- Who has market power – suppliers or buyers?
- Is the market segment cyclical?
On your organisation:
- How much will we need to invest to compete successfully in the market?
- What profit margins can we achieve?
- What profits are available – in dollars?
On your competitors:
- How do your competitors differentiate their offerings?
- What special skills do your competitors possess?
- How do customers perceive your competitors’ product quality?
- How do customers perceive your competitors’ service levels?
- How flexible is their pricing structure?
- How competitive are they in regard to price?
- What variety and range of applications and features do they offer?
- What complimentary products or services do they offer?
- Do they have superior technology compared to ours?
- What value-added services do they offer?
- Are they targeting any particular geographic area or niche market?
- How is their pricing strategy structured – on service, quality, other?
- What price variations will they offer to make a sale?
- How are their products perceived technically compared to yours – inferior, about the same, superior?
- Do they target the same niche markets as you?
- Are their staff superior to yours by way of, expertise, qualifications, experience, contacts, service levels, personal ability?
- 25. What can your competitors offer that you cannot?